Who Can Stop the Loonie?

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.

High volatility marked this Thursday’s session for the Canadian dollar, as bad events in China and the U.S. declined appetite among traders for riskier bets in foreign-exchange markets, but in the intraday comparison it managed to post another advance versus the greenback as an employment report to be released before the weekend is likely to boost even further odds that the Canadian economy recovery is gathering momentum. The current rally is the longest advance for the Canadian currency in more than 5 years, and speculators suggest that it may reach parity with its U.S. counterpart in the following months.

Currencies tied to growth are profiting from higher demand for commodities, and being Canada a main supplier oil to the United States, the black gold is helping the loonie on its advance, but also, the domestic scenario is positive, and the interest rates outlook is also adding to the confidence towards assets in the country.

USD/CAD traded at 1.0235 as of 04:12 GMT from a previous intraday rate of 1.0263.

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