Canadian dollar is getting a boost today as Forex traders look for higher yields. Particularly, loonie is benefitting from flows out of Japan.
Canadian dollar is being favored right now as Forex traders attempt to capture the benefits of higher-yielding commodity currencies. Against its major counterparts, the loonie is heading higher. Along with the Down Under currencies, the Canadian dollar is seeing some solid progress.
The latest stimulus announcement from the Bank of Japan has many wondering where it will all end up, and that is sending flows toward the Canadian dollar. On top of that, loonie has a higher interest rate right now. When compared with the pound and the US dollar, the Canadian dollar has an attractive yield. It’s not even a bad yield compared to the euro, since there have been difficulties in the eurozone, and there is speculation that the ECB will have to cut rates at some point.
So, for now, the loonie, with a stable economic showing, and with a higher yield, looks attractive to many Forex traders.
At 15:51 GMT USD/CAD is down to 1.0153 from the open at 1.0164. EUR/CAD is down to 1.3259 from the open at 1.3297. GBP/CAD is down to 1.5548 from the open at 1.5573. CAD/JPY is up to 98.1435 from the open at 97.4360.
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