The Canadian dollar managed to grow this week and almost recovered from the last week’s losses against the U.S. dollar, as the the global stock markets gains combined with an excellent dynamics of the crude oil pushed CAD.
The currency also rose against the euro despite a strong support for the latter from the stress test speculations. While the Canadian stocks performed quite well during this week (S&P/TSX rose by about 1.31 percent), crude oil, Canada’s main export commodity demonstrated a weekly gain of 3.12 percent, providing even more ground for the CAD’s growth.
Last week’s loss was inspired by the comments of the Canada’s central bank, stating that the low inflation probably won’t require more rate hikes in the future, reducing currency traders’ expectations for the rate difference speculations. Analysts believe that the current situation isn’t that good for the loonie, as without the support from the Bank of Canada it will now depend completely on purely speculative entities — oil and stock prices.
USD/CAD fell from 1.0571 to 1.0348 or 2.11 percent this week after rising by 2.39 percent last week. EUR/CAD declined from 1.3635 to 1.3374.
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