Good Economic Reports from US & Europe Push Loonie Higher

The Canadian dollar went up today against the US dollar, paring previous losses, as the German business sentiment unexpectedly increased and the number of the US durable good orders grew, increasing the attractiveness of the growth-related currencies. The currency later weakened somewhat but remained above the opening level. The loonie fell versus the euro.

The new orders for the US durable goods, excluding transportation, grew 2.0 percent in August, following the 2.8 percent decline in July. The analysts expected 0.9 percent growth. The Ifo Business Climate for industry and trade in Germany has again slightly improved in September, as a result the Ifo Business Climate Index rose from 106.7 to 106.8. The increase was small, but it’s not bad anyway, considering the forecasts promised a decline.

The loonie, as the Canadian currency nicknamed, rose also as the stocks rallied and the prices for crude oil, the main Canada’s export, increased. The MSCI World Index of stocks went up 1.6 percent, following the decline by 0.4 percent. November delivery for crude oil gained as much as 1.9 percent.

USD/CAD dropped from 1.0431 to 1.0270 today as of 17:07 GMT, following the decline to the intraday low of 1.0225. EUR/CAD went up from 1.3769 to 1.3837.

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