The Canadian dollar rose today after crude oil, the main Canadian export, climbed to the highest level in 26 months and as the optimism for the global economic recovery boosted the currencies linked to the growth.
January delivery for crude oil gained as much as 1.3 percent to $89.42 per barrel in New York. One of the reasons for gains of crude was the decline of the US jobless claims, which caused speculation that the US economy improves and the demand for oil would grow. Yet, the gains of the US dollar trimmed the gains of oil. Futures on crude jumped to $90.76 per barrel on December 7th, the highest level since October 2008. The Standard Poorâs 500 Index advanced 0.5 percent before reducing the gains to 0.1 percent.
The optimism for the US economy, caused by the tax cuts and the positive employment data, spilled over the markets, spurring the commodities and the commodity currencies. The gains may be trimmed, though, by the concerns about China’s attempts to slow its economic growth.
USD/CAD fell from 1.0113 to 1.0107 as of 22:34 GMT today after it dropped as low as 1.0065. EUR/CAD slipped from 1.3411 to 1.3383, following the decline to 1.3301.
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