Forex – USD/CAD Moves Higher as Oil Prices Continue to Drop

© Reuters. Greenback gains some ground vs. loonie on declining oil prices – The U.S. dollar moved higher against its Canadian counterpart on Tuesday, as declining oil prices weighed on the commodity-related Canadian currency, although caution ahead of this week’s U.S. inflation data was expected to limit the greenback’s gains.

was up 0.12% at 1.2595 by 09:30 a.m. ET (13:30 GMT).

The Canadian dollar was dented by a fresh decline in , after they briefly rebounded earlier Tuesday.

In the U.S., investors were eyeing this week’s due on Wednesday and on Thursday for further clues on how fast the Federal Reserve will raise interest rates this year.

Monday’s recovery for global stock markets also weighed on the greenback. U.S. equities were especially boosted by news of a by the Trump administration.

The plan is part of the two-year passed by the U.S. Congress last Friday, ending a brief government shutdown.

The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.

The loonie was lower against the euro, with climbing 0.58% to 1.5552.

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