The Canadian dollar rose against its U.S. counterpart after two days of decline as demand for the crude oil, the main Canada’s export, increased and the commodity prices rallied. The loonie performed not so well against other currencies, including the euro, against which Canada’s currency continued to fall.
The S&P 500 Index dropped 0.8 percent. The decline of the stocks usually followed by the decline of the loonie, but this time the effect of the falling equities was muted by the rallying commodities. Crude oil futures rose for the first time in a week, advancing by 1.4 percent to $78.03. Copper futures went up to $3.2765 per pound, the highest level since May 4th. The natural gas futures rallied for the fourth day.
The Canadian currency lagged behind other currencies, failing to profit from the greenback’s weakness to the full extent. One of the reasons for this is the bad economic data from Canada. The government report showed that the industrial product price index dropped 0.9 percent in June from May, the biggest decline since May 2009.
USD/CAD fell to 1.0357 from 1.0384 as of 20:08 GMT today after dropping as low as 1.0298. EUR/CAD rose from 1.3492 to 1.3544.
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