Canadian Dollar Snaps Three-Day Drop
The Canadian dollar jumped yesterday, snapping the three-day decline against its US peer, and maintained its gains today as risk appetite on the Forex markets resulted in gains for currencies tied to growth.
FX traders were drawn toward currencies with higher yield and that helped to stop the loonie’s rally to the downside. Hopes that Europe will be able to resolve its difficulties helped to lift mood of speculators. Positive data from the United States, including the rising numbers of housing stars and building permits, did not hurt the sentiment either.
Previously, comments of Mark Carney, Bank of Canada’s Governor, weakened the Canadian currency. Still, investors look favorably on the loonie. Macroeconomic data this week is expected to be positive, including accelerating inflation.
USD/CAD slumped from 0.9864 to 0.9776 yesterday and traded at 0.9787 as of 1:03 GMT today. EUR/CAD declined from 1.2876 to 1.2827 and remained near that level at today’s trading session. CAD/JPY was up from 80.68 to 80.78 today.
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Earlier News About the Canadian Dollar:
- Carney's Speech Makes Canadian Dollar Weak (2012-10-17)
- Canadian Dollar Gains Ground on Better than Expected US Data (2012-10-15)
- Canadian Dollar Climbs After Trade Deficit Narrows (2012-10-11)
- CAD Stronger vs. Greenback, Down vs. USD & JPY (2012-10-09)
- Loonie Drops against Greenback, Gains against European Currencies (2012-10-08)