The Canadian dollar rose against its U.S. counterpart, paring previous losses, and extended its rally versus the euro today on the signs of the record economical growth and on rising oil prices, which caused the speculations that the central bank will increase the interest rates.
Canada’s gross domestic product grew 6.1 percent in the first quarter of this year, the fastest pace in a decade. July delivery for crude oil rose $0.71 (1 percent) to $74.68 per barrel on the New York Mercantile Exchange. Crude oil is the source of the biggest export revenue for Canada.
Considering the good fundamentals, the bets on the increasing interest rates rose, while they dropped previously as the turmoil on the global markets decreased the likelihood of the increase. Tomorrow’s decision of the central bank about the interest rates, whichever it’ll be, will have the significant impact on the Canadian currency.
USD/CAD dropped to 1.0460 as of 18:20 GMT today from the opening price of 1.0516. EUR/CAD went down to about 1.2863 from its opening rate of 1.2914.
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