Positive market sentiment allowed the Canadian dollar to overcome poor domestic fundamentals, resulting in a sharp advanced against the US dollar and gains against other most-traded currencies.
The general market sentiment was risk-positive today as good data from China and Europe made traders less concerned about economic growth. Riskier currencies appreciated as a result.
The optimistic mood helped the Canadian currency to shrug off the negative impact of yesterday’s macroeconomic reports. The current trading session was not helpful either in terms of fundamentals as crude oil, the major Canada’s export, declined. Yet the loonie rallied nevertheless. Investors hope that tomorrow’s data will be a bit better, demonstrating growth of employment after a small decline in June.
USD/CAD dropped from 1.0421 to 1.3022 as of 19:26 GMT today. EUR/CAD slipped from 1.3896 to 1.3816, while CAD/JPY advanced from 92.38 to 93.50.
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