Loonie Gets Help from Stocks & Commodities

The Canadian dollar advanced for the second day before the start of the current trading session as the rally of the global stocks and commodities bolstered growth-related currencies.

Currently markets are driven by hopes for positive outcome of the austerity vote tomorrow. August future for delivery of crude oil, the major export of Canada, gained as much as 2.8 percent to $93.14 per barrel in New York. The Standard & Poor’s 500 Index advanced 1.3 percent, posting the second day of gains. The Thomson Reuters/Jefferies CRB Index of raw materials jumped 1.7 percent, showing its first advance in five days.

The rally tempered the loonie’s losses versus the US dollar and currently the Canadian currency is heading to the 1.3 percent monthly drop. The Canadian dollar touched the lowest level in 12 years against the Swiss franc.

USD/CAD slumped from 0.9858 to 0.9810 before trading at 0.9813 as of 1:01 GMT today. CAD/JPY traded near 82.49 after yesterday’s jump from 81.96 to 82.63. CAD/CHF traded at about 0.8473 after it reached yesterday 0.8408, the lowest price since October 1998.

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