Good Economic Indicators Result in Rally of CAD
The Canadian dollar rallied yesterday as positive macroeconomic reports made investors willing to risk and buy assets associated with higher yield. The currency maintains the gains today so far.
Falling US jobless claims and growing Britain’s economy improved the mood of traders. The positive sentiment resulted in rising prices for crude oil, the major Canada’s export. Futures for crude jumped as much as 2 percent to $93.28 per barrel in New York yesterday.
Today’s economic data is expected to be also favorable. Analysts predict that the report will show growth of US economy by 3.1 percent in the second quarter of this year following the advance by 0.4 percent in the first quarter.
USD/CAD traded at 1.0201 as of 00:21 GMT today after slumping from 1.0254 to 1.0196 yesterday. EUR/CAD was at about 1.3265 following the drop from 1.3345 to 1.3267 on the previous trading session. CAD/JPY advanced from 96.98 to 97.27 before trading at 97.18.
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Earlier News About the Canadian Dollar:
- CAD Reverses Losses vs. USD & JPY, Erases Gains vs. EUR (2013-04-24)
- Loonie Heads Lower After Good Trading Session (2013-04-24)
- Canadian Dollar Attempts to Rally, Fails (2013-04-23)
- CAD Closes Flat vs. USD & EUR, Stronger vs. JPY (2013-04-20)
- Loonie Gains Support against Greenback on Recovering Commodities (2013-04-18)