CAD Touches Highest Since February vs. USD

The Canadian dollar gained against its US counterpart today, reaching the highest level since February. The currency trimmed its gains by now, though, and fell versus other most-traded peers.

Stephen Poloz, Bank of Canada Governor, made hawkish remarks yesterday, leading to speculations that the BoC is going to hike interest rates later this year. It looks like central banks around the world are changing there bias from dovish to more hawkish, and Canada’s bank is no exception.

Recovering crude oil prices were also helping the Canadian currency. US crude was hanging near the $45 level during the current trading session.

Data on growth of Canada’s economy in April will be released tomorrow, and it may affect the currency in a big way. Experts predicted it will show a 0.2% growth of gross domestic product.

USD/CAD was down from 1.3037 to 1.2985 intraday before trading at 1.3019 as of 17:13 GMT today. EUR/CAD gained from 1.4832 to 1.48882. CAD/JPY climbed from 86.09 to 86.71 during the session but pulled back to trade at 85.96 later.

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