The Canadian currency traded at the highest level in almost a month after China posted a report indicating a sharpened growth, consequently favoring the loonie’s outlook due to Canada’s exporting economic profile, which is likely to be more favored than the U.S. in the short term of an economic recovery in global scale.
The loonie is extremely influenced by the sentiment in equities markets and demand for commodities, specially the crude oil, which rose today favoring the Canadian currency that touched the highest level since the Bank of Canada started to stress that a strong currency could cause a slowdown in the North American nation recovery two months ago, forcing artificially a severe losing streak for the Canadian dollar which traded near parity versus its U.S. counterpart before the BOC’s psychological interventions. The fact that China is posting positive figures for its economy also helped the loonie directly and indirectly, since the economic behavior of the Asian nation is highly considered among traders and has a strong power to drift markets sentiment.
Despite the Bank of Canada’s position against a strong loonie, risk appetite has been so intense, and decreased attractiveness for the greenback so deep, that traders are buying assets in Canada once again and betting on a strong loonie for the
USD/CAD traded at 1.0458 as of 14:45 GMT from a previous rate of 1.0525 in the intraday. CAD/JPY traded at 85.89 from 84.77.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.