Market Sentiment Positive for Commodity Currencies, Benefiting CAD

The Canadian dollar climbed today as stocks and commodities rallied, increasing the attractiveness of currencies tied to economic growth. The loonie gained against the euro for a fourth session in a row, reaching the highest level since October 16.

The risk sentiment was good across markets today. The Standard & Poor’s 500 Index of shares gained 0.8 percent. The S&P GSCI Index climbed as much as 2.3 percent, indicating rising commodity prices. Crude oil, the major Canada’s export, was among winners, surging 4.2 percent to $89.22 (the highest level in two weeks) in New York.

The US presidential election did not deter the loonie’s rally. In fact, many economists think that the US economy will continue to expand no matter who wins the election. And such view is favorable for the Canadian currency.

USD/CAD fell from 0.9961 to 0.9920 as of 22:53 GMT today, reaching the lowest settlement since October 22. EUR/CAD declined from 1.2743 to 1.2708. CAD/JPY advanced from 80.54 to 81.00, the highest close since May 4.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *