The Canadian dollar advanced against both U.S. dollar and the euro for a second day today as the stock markets surged globally, while the oil price advanced close to $60 per barrel.
The loonie, as the Canadian currency is often called, is a commodity currency that is doomed to appreciate at the time of the global economic recovery. The CAD went up against all major currencies except the British pound today, after demonstrating even faster gains yesterday, while June forward contracts on oil traded above $60/barrel on NYMEX.
Analysts see no other way for the currencies to behave if the crisis will continue to fade. Such currencies as the Canadian dollar will have to rise, while the «safe haven» dollar and yen will have to fall. Its prudent to go short on USD/CAD and long CAD/JPY if you believe in the soonest recovery of the worlds economy.
USD/CAD went down from 1.1632 to 1.1601 as of 14:00 GMT today after reaching its daily low 1.1545. EUR/CAD fell from 1.5766 to 1.5764 after falling as low as 1.5726 earlier.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.
Be First to Comment