Canadian Dollar Rises as Economies of USA & Canada Improve

Canada’s dollar continued to rise today, following yesterday’s advance, on the signs that the economy of the United States is improving, while the economy of Canada itself also shows signs of recovery.

The unemployment claims fell from 385,000 to 366,000 last week. The Producer Price Index rose 0.3 percent, while the New York manufacturing index and the Philadelphia Fed Business Outlook Survey showed that manufacturing expanded this month.

Canada’s leading index rose 0.8 percent last month. On the other hand, the manufacturing sales dropped 0.8 percent in October.

Optimism returned to markets, but traders remained a bit cautious. The Standard & Poor’s 500 Index rose 0.3 percent, while the S&P/TSX Composite Index slipped 0.3 percent.

USD/CAD fell from 1.0348 to 1.0320 and EUR/CAD dropped from 1.3466 to 1.3455 as of 3:04 GMT today. Meanwhile, CAD/JPY advanced from 75.18 to 75.40.

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