The Canadian dollar touched the highest level in seven weeks against its US counterpart as the positive market sentiment drove investors to assets that offer higher risk, but also bigger yield.
The Canadian New Housing Price Index rose 0.2 percent in February. Forecasters have anticipated it to increase with the same 0.1 percent as in January. Some analysts think that all poor data from Canada has been already priced in and traders will pay more attention to good news.
Market participants were willing to risk, driving higher-yielding assets upward. The Standard & Poorâs 500 Index gained 0.4 percent, another evidence of the positive traders’ mood. The Canadian currency benefited from the optimistic market sentiment.
USD/CAD traded at 1.0099 as of 1:33 GMT today after touching 1.0082 yesterday — the lowest since February 18. EUR/CAD was at 1.3246 today after falling from 1.3254 to 1.3233 yesterday. CAD/JPY was flat at 98.51, near the highest level since September 2008.
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