Forex News

The Canadian dollar gained for another session, in a rally that seems to be endless, as the Federal Reserve ratified its dovish position on its interest rates, allowing the strong flow of capital from the U.S. towards north to continue for another day.

After a rather gloomy start of the year for the loonie as investors returned to the U.S. as its economy picked up in the two moths of 2010, the Canadian dollar is once again making its way towards parity with its U.S. counterpart, as commodities and stocks continue to push its rates up.

The loonie ended this Thursday posting an amazing result of 10 straight days of advance versus its U.S. counterpart and also gaining versus multiple important currencies as risk appetite has been favoring markets with significant influence on the Canadian dollar.

The Canadian dollar had an amazing eighth day of consecutive gains versus its southern counterpart as currencies tied to growth profited from another session of optimism in commodities and equities markets, allowing the loonie to remain bullish.

The Canadian dollar traded high versus its U.S. counterpart and several other key-currencies in foreign-exchange markets as its main commodity export, the crude oil, rose again allowing the loonie to start this week advancing.

The Canadian dollar started the month of March on a bullish pattern after policy makers in the country affirmed that inflation is slightly above what the Bank of Canada expected, fueling speculations that interest rates may be hiked in the country anytime soon.

The Canadian dollar started this week extending a rally started last Friday as quarterly gross domestic product figures in the country surprised forecasts positively, attracting more traders to inject capital in the country as the North American economy rebounds.

The Canadian dollar pared some of the losses occurred this week as risk appetite rose significantly before the end of this Friday’s session, allowing the loonie and other currencies tied to growth to outperform a weakened U.S. dollar.

The Canadian dollar slid to the lowest level in two weeks versus its U.S. counterpart as pessimism regarding the global economy is affecting the outlook for currencies linked to growth, as its the case of the loonie, since Canada is one of the world’s leading suppliers of commodities.

The Canadian dollar had a disappointing start this week as a combination of global pessimism and optimism exclusively to the U.S. economy declined appeal for currencies tied to growth, but today the loonie ended its losing trend on more favorable news for its currency outlook.