Forex:Silver sell-off helps US Dollar recover against the Aussie and Loonie

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The Canadian dollar dropped in value against the U.S. dollar on Monday. Despite the light trading occurring from Monday, being a bank holiday in most markets, the reduction in oil prices gave a green light for investors to seek the U.S Dollar as an option. It is worth stating that the oil prices dropped early in the EU session from their highest intraday value since the 2008 of September. What is more a lot of investors that had held long positions on silver decided to lock their profits by selling it after it had reached record high levels. This sell-off in silver also helped the American greenback to set off from its low values it has been struggling with during the past week.

A similar picture was also observed in the AUSUSD pair. The Aussie that had reached a 29year peak against the US Dollar during the early Asian session started dropping in value following the silver sell-off. With Canada and Australia being major exporters of commodities and natural resources it is natural by moves in crude oil and silver to affect their currencies.