The Canadian dollar jumped on Thursday, gaining not only on the US dollar but against other most-traded rivals as well. For a change, the currency did not track the movement of crude oil, which sank during the trading session.
Lately, the Canadian currency was tracking moves of oil prices closely. Yet today their performance diverged as crude was tumbling due to concerns about oversupply while the loonie demonstrated a strong rally.
The reason for the robust performance was risk appetite on the Forex market that has provided boost for riskier currencies. Traders and analysts continue to speculate about possible delay of monetary policy normalization from the Federal Reserve, and this helps most growth-related currencies to gain even though the US dollar was attempting to recover during Thursday’s trading.
Friday will provide an important report about Canadian manufacturing sales. Forecasts predict a drop by 0.8 percent — not a good result for Canada’s currency.
USD/CAD dropped from 1.2934 to 1.2863 as of 22:54 GMT today. EUR/CAD sank 1.3 percent from 1.4837 to 1.4631. CAD/JPY gained from 91.83 to 92.45.
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