The Canadian dollar gained today as global stocks rallied and positive macroeconomic fundamentals in the United States boosted risk appetite and increased appeal of Canada’s currency.
The Standard & Poorâs 500 Index of stocks gained 0.6 percent to 1,412 after reaching 1,412.28, the highest level since May 2008. Futures on crude oil, the major export of Canada, rose 0.8 percent in New York. The loonie also continued to profit from the positive outlook for the USA.
Tom Levinson, currency strategist at ING Groep NV, commented:
If the U.S. data stays strong, then that really is an opportunity for Canada to catch up a little bit. People are pricing in a decent chance of rate hikes for the Bank of Canada even this year. Thereâs an opportunity for the Canadian dollar to do a little bit better.
USD/CAD fell from 0.9911 to 0.9871 and CAD/JPY rose from 84.09 to 84.38 as of 20:54 GMT today. EUR/CAD was almost flat at 1.3068.
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