Canadian Dollar Surges as Risk Aversion Turns to Risk Appetite

The Canadian dollar surged today, erasing losses against its US counterpart, as the signs of the economic recovery outweighed the risk aversion sentiment, spurring the loonie.

The Canadian consumer prices rose 0.7 percent in October, on the seasonally adjusted monthly basis, the largest increase since January 2006. This follows the 0.3 percent increase in September. The retail sales in Canada increased for the fourth consecutive month, rising 0.6 percent in September. The retail sales in the volume terms were up 0.4 percent.

Crude oil, the biggest Canadian export, advanced as much as 2.8 percent. Russia announced that it’s going to add the Canadian currency to its international reserves, increasing the appeal of the loonie.

USD/CAD tumbled from 1.0243 to 1.0110 today as of 21:14 GMT, following the decline to 1.0090. EUR/CAD slumped from 1.3692 to 1.3475.

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