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 dollar has started this week losing versus important currencies after the Federal Reserve made dovish statements regarding the country’s interest rates outlook, shunning investors to purchase assets in North America, making riskier assets to climb considerably.

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.

After gaining for two consecutive days versus important currencies like the euro and the U.S. dollar, the kiwi currency didn’t manage to sustain its trend after central bankers in the country affirmed that lack of economic improvements in the South Pacific nation will delay interest rate hikes.

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 Polish zloty is facing a scenario different from its neighboring currencies in the Baltics, central Europe and the euro as interest rates may rise in the following months to control the country’s growing inflation, helping the zloty to climb in forex markets this Thursday.

The pound remained bearish this week as market sentiment towards assets in the U.K. didn’t manage to improve, after interest rates remained at a record low in the country, according to what most analysts expected to happen for today’s decisions.

The Swedish krona fell for another day this Wednesday as optimism in the Eurozone and negative releases in the Nordic country declined attractiveness regionally for assets in Sweden.