Better Outlook for US Economy Pushes Loonie Up

The Canadian dollar gained today after the Federal Reserve announced its bonds-buying plans, improving the outlook for the economy of the US, the biggest Canada’s trading partner.

The Federal Reserve it’s going to spend $600 to purchase the Treasuries. While the size of purchases is lower than some analysts expected, it’s quite significant. The improving economy of Canada’s neighbor can support the economy of Canada itself.

Crude oil, the key Canada’s export, reached $85.12 per barrel on NYMEX. The analysts say it may rise above the $87 level as the better outlook for the US economy because of the quantitative easing cause the speculation that demand for oil may increase.

USD/CAD went down from 1.0086 to 1.0077 as of 4:22 GMT today. EUR/CAD traded at 1.4235 after opening at 1.4253 and falling to 1.4220.

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