Canadian Dollar Follows Commodities in Rally

Trading environment was favorable to risky asses today, helping commodities to rally. This, in turn, led to gains for currencies linked to prices for raw materials. The Canadian dollar was among those currencies.

Many commodities rallied on Thursday, including crude oil that jumped more than 2 percent. Moves of the Canadian currency are strongly correlated with performance of crude, meaning that the current rally was not a surprise. There is still risk that Greece will not get a bailout from the European Union, but for now market participants are relatively optimistic.

USD/CAD dropped from 1.2745 to 1.2709 as of 23:36 GMT today, and its daily minimum was at 1.2665. CAD/JPY gained from 94.68 to 95.75.

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