The Canadian dollar advanced today as the crude oil prices surged to the highest level since September 2008, U.S. stocks gained and gold climbed to the highest level since November 2009.
The Canadian currency depends on the prices for the commodities, especially crude oil, being the key export commodity of the nation, therefore the price increase bodes well for the Loonie. The expectation for the central bank to increase the interest rates as soon as of June or by July also supported the currency’s performance.
Still, the concern that the bets for the rates increase were overdone has already slashed the currency previously, so many economists look forward for the central bank’s meeting in June to clarify the Loonie’s future moves. The reports about the employment this week may give suggestions to the Canadian dollar’s performance in the near term.
USD/CAD traded at about 1.0110 as of 18:37 GMT today after opening at 1.0160. EUR/CAD dropped to 1.3349 from the opening rate of 1.3543.
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