The Canadian dollar gained for another session, in a rally that seems to be endless, as the Federal Reserve ratified its dovish position on its interest rates, allowing the strong flow of capital from the U.S. towards north to continue for another day.
The crude oil, one of Canada’s notably known commodity export, advanced this Wednesday, and for another day, more than 1 percent, allowing attractiveness for assets in the Toronto Stock Exchange to advance even further, which helped the loonie to hit the highest rate versus its U.S. counterpart since July 2008, in a rally which, according to analysts, will set the Canadian dollar to reach parity with the greenback in the following months.
The fact that interest rate hikes expectations for the short term were frustrated in the U.S. is really helping its Canadian neighbor to become more attractive, as well as a positive market confidence towards the economic in both Asia and North America. It is indeed possible to see both the greenback and the loonie trading in equality anytime soon.
USD/CAD traded as low as 1.0068 this Wednesday, and climbed slightly to 1.0109 as of 02:31 GMT.
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