Canadian Dollar Advances on U.S. Jobless Claims

The Canadian dollar continued to gain today versus its U.S. counterpart as risk appetite rose considerably in North America after U.S. jobless claims declined beyond expectations raising demand in markets that influence the loonie, as stocks and commodities.

Different events in the international economic scenario allowed the loonie to post the sharpest gains in a month versus several currencies after U.S. jobless claims declined to 440k during the past week, from a previous number of 483k applications, evidencing that the economic recovery in the U.S. may be accelerating, which rose appetite for riskier assets in stock markets, consequently pushing the loonie up. An European Union summit held today announced that the bloc will help Greece to solve its growing budget deficit issues, even if, at a first moment, it will not be a direct financial help, it eased concerns of an eventual long period of pessimism in trading markets.

The Canadian dollar is climbing its way back to more reasonable rates, according to analysts. After being impacted by several weeks of decreased demand for risk and dropping crude oil prices, positive reports and statements are bringing the loonie up once again.

USD/CAD fell to 1.0499 as of 20:10 GMT from a previous rate of 1.0617 yesterday. CAD/JPY traded at 85.42 from 84.52 yesterday.

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