Canada’s Dollar Rallies on Optismism

The Canadian dollar profited today from different factors that allowed optimism to penetrate equities and commodities markets, extremely influential on the loonie rates, that touched the highest level in one-week versus its U.S. counterpart.

The loonie started the day gaining versus the U.S. dollar on speculations that Greece would be receiving an immediate help from EU members to solve its financial crisis, but as these speculations faded out, the Canadian dollar managed to sustain its gains based on other events, specially versus the U.S. dollar, as the country’s trade balance posted worse-than-expected figures. The Federal Reserve also brought a certain amount of optimism today in North American markets as it signaled it will lift some lending stimulus in order to normalize the United States’ financial systems, as the recession is already behind.

Analysts indicate that the loonie profited from a risk appetite session that even if it not a strong one, was enough to make the currency rally since it was already being considered as undervalued by a good part of currency traders.

USD/CAD traded at 1.0623 as of 20:48 GMT from a previous rate of 1.0665.

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