Higher Commodity Prices Lead to Gains of Loonie
The Canadian dollar advanced today as positive macroeconomic indicators and rising prices for raw materials supported demand for the currency tied to commodities. The loonie was unable to outperform the euro, which rallied on the positive news from Spain.
The Raw Materials Price Index grew 3.4 percent in August, led by gains of oil prices. Crude did not disappoint today either, rising amid the positive market sentiment. Today’s favorable data added to optimism, caused by last week’s positive revision of Canada’s economic growth.
Later this week, the Canadian employment data will be released and it is expected to be moderately good. The employment reports from the United States are also scheduled for release this week, but expectations for them are not high and that may prove detrimental for the Canadian currency.
USD/CAD was down from 0.9838 to 0.9825 (the daily low was at 0.9796), while CAD/JPY rose from 79.19 to 79.37 as of 16:19 GMT today. EUR/CAD advanced from 1.2637 to 1.2677, while its daily low of 1.2600 was the lowest since September 24.
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Earlier News About the Canadian Dollar:
- Canadian Dollar Loses Ground against the US Dollar (2012-09-28)
- Canadian Dollar is Down as Negative Sentiment Grows (2012-09-26)
- Canadian Dollar Inches Higher against US Dollar (2012-09-21)
- Canadian Dollar Struggles to Hold Ground against US Dollar (2012-09-18)
- Loonie Gets a Boost on Better Economic Data Before Falling Back (2012-09-13)