Bullish Week Start for Canadian Dollar on Stocks

The Canadian dollar continued its previous week rally this Monday as risk appetite remained strong globally, increasing demand for Canadian commodity exports and creating an attractive scenario in Toronto equities markets, as appeal for safety declined, forcing the greenback down.

The 
Asia-Pacific Economic Cooperation forum agreed that stimulus for economies to become more solid should remain for a certain amount of time, which caused risk appetite to rise this Monday, as these measures are likely to provide a faster recovery in most global economic regions, which brought investors to bet in a more attractive Canadian currency, as a hastened economic recovery is likely to push up demand for Canadian energetic and metallic commodities, bringing capital inflows to the North American nation. Japan posted a higher than expected quarterly economic growth this morning in Tokyo, which also improved markets sentiment in Asia, decreasing attractiveness for the U.S. dollar, which lost against its Canadian counterpart, but also to all other main traded currencies.

The Canadian dollar is profiting from optimism among investors, even if the Bank of Canada remains against a strong currency that could slow down the economic process in the nation. The call for stimulus to continue were essential for the loonie to climb even higher, and its likely that this trend will follow for the next days until a shift in market sentiment happens.

USD/CAD traded at 1.0455 as of 16:22 GMT from a previous rate of 1.0535 when markets opened yesterday.
CAD/JPY traded at 85.48 from 85.92.

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