The Canadian currency climbed from the lowest rate in 2010 versus its U.S. counterpart as a positive real state report combined with a slight recovery in the crude oil rates gave strength for the loonie to trade below $1.07 in this start of this week’s session.
The roller coaster on equities and commodities rates with alternating sessions of risk aversion and risk appetite is causing strong volatility on the Canadian dollar price, and after touching the lowest level versus the greenback last week, the loonie had a breather today as commodities halted their losing streak, specially the crude oil. A positive housing starts report published today in Canada surprising traders with an advance beyond forecasts, brought confidence that, at least domestically, the Canadian economy is improving despite uncertainties regarding the international market for Canadian manufactured products and raw materials.
The Canadian dollar is being, at some point, a hostage of stocks and the crude oil, as there are not very influential expectations regarding the Canadian economy domestically, like interest rate hikes or other monetary policies changes. The crude oil and equities will continue to determine the trends for the loonie on the upcoming weeks.
USD/CAD traded at 1.0677 as of 15:58 GMT from as high as 1.0773 last Friday. CAD/JPY was at 83.55 from 82.45.
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