Oil prices are pulling back from highs, adding pressure on the Loonie.
The US Dollar rallies for the fourth consecutive ¡day against its Canadian counterpart on Tuesday. The pair extends gains reaching fresh seven-month highs above 1.4080 during the European trading session, buoyed by a risk-averse market mood, while the Loonie struggles with Crude prices pulling back from lows.
The dismal market sentiment underpinning demand for safe-haven assets like the US Dollar, which remains among the best performing currencies on Tuesday, on investors rush for safety in the absence of key macroeconomic releases, with European equity indexes posting losses beyond 1% and US Futures in the red.
Beyond that, the hawkish message from Federal Reserve Chairman Jerome Powell, which puts further monetary easing this year into question, has prompted investors to dial back hopes of another rate cut in December, providing additional support to the Greenback.
The Canadian Dollar, on the other hand, remains vulnerable as Crude prices, Canada's main export, retreat further. The price of the benchmark West Texas Intermediate barrel has extended its decline from last week's highs near $62.50 to levels right above the psychological $60.00 level at the time of writing.