Forex News

The loonie posted significant gains versus the U.S. dollar as the crude oil continued to advance and optimistic speculations about the world economy brought stock markets up.

Canada’s dollar posted the highest gains in 59 years during the previous month thanks to a rebound in commodity prices and relatively to that, in the equities market. After a correction movement in the beginning of June making the loonie to lose 2.2 percent against the U. S. Dollar, it continued to strength, as stocks rebounded this Monday in North American markets. A domestic housing starts report also pushed the Canadian currency up, as the numbers were beyond the expectations of most specialists with an annualized total of 128,400 units in May compared to 117,600 in the previous month, helping investors’ confidence to improve, considering that the real estate market was one of the most problematic sectors affected by the credit crunch last year.

The main reason behind the loonie’s rally is the incredible and unexpected performance seen in the stock markets since the first signs of economic recovery started to appear in Asia. Canada is a main commodity exporter, and as the demand for oil rose combined with a growing attractiveness for higher-yielding assets, Canada’s dollar became one of the most sure bets in the currency market for the moment.

USD/CAD fell to 1.1084 from a previous price of 1.1245.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Earlier News About the Canadian Dollar:

• Canadian Dollar Had Highest Monthly Gain in 60 Years (2009-05-30)
• Canadian Dollar Gains on Stocks and Oil Growth (2009-05-19)
• Canadian Dollar Reacts on Strong Employment Data (2009-05-09)
• Oil and Stocks Push Canadian Dollar Down (2009-05-06)
• Canadian Dollar Continues Rise on Positive Economic Forecasts (2009-05-02)

This entry was posted on Tuesday, June 9th, 2009 at 11:39 am and is filed under Canadian Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.