The Canadian dollar rose against its US counterpart on the gains of the stocks and raw materials, but the future of the currency amid the economic turbulence across the world remains unclear. Canada’s currency slipped versus the euro.
The Standard & Poorâs 500 index advanced as much as 1.1 percent and the MSCI World Index rose 1.2 percent. Futures for crude oil went up 2.9 percent. It looks like the markets recovered very quickly after China’s increase of the interest rates.
Not everything looks good for the Canadian currency, though. It’s weakened both by the internal economic troubles and the external influence. The feeble US economic recovery is one of the main foreign negative drivers for the loonie. In Canada itself the economy also looks far weaker than it seemed several month ago. The Bank of Canada decrease its projection of the gross domestic product in the third quarter to 1.6 percent, compared to the July forecast of 2.8 percent. The Bank said that Canada’s economy requires another year to fully realize its potential.
USD/CAD closed at 1.0210 at yesterday’s trading session after it opened at 1.0326, the currency pair traded near 1.0228 as of 00:13 GMT today. EUR/CAD rose from 1.4255 to 1.4276 today.
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