The Canadian dollar jumped today against its US counterpart as China kept interest rates unchanged, resulting in the advance of the commodities and the stocks and gains of the commodity currencies. The currency declined versus the euro as the North American equities and crude oil pared gains.
The interest rates hike in China was already priced in and the markets now try to adjust themselves after the rates increase hasn’t happened. Mark Carney, the Governor of the Bank of Canada, voiced his concern that refusal of some countries, apparently China among them, to let their exchange rates float more freely may have negative impact on the economies of the developed nations.
The Reuters/Jefferies CRB Index of raw materials climbed as much as 1.6 percent. The MSCI World Index rose 0.7 percent, while the S&P 500 erased gains. January delivery for crude oil curbed gains, rising 0.5 percent to$88.24 per barrel. Previously it gained as much as 1.9 percent to $89.49.
USD/CAD traded near 1.0075 as of 00:17 GMT today after it fell yesterday from the opening level of 1.0097 to the intraday low of 1.0026 and closed at 1.0075. EUR/CAD traded at about 1.3483 after it jumped on the yesterday’s session from 1.3333 to the intraday high of 1.3519 and closed at 1.3487.
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