Canadian Dollar Strengthens on Stocks & Oil Prices

The Canadian dollar strengthened today as the gains of the global stocks and the rising oil prices spurred the demand for the currencies related to the economic growth.
The Standard & Poor’s 500 Index rose 1.6 percent and The MSCI World Index gained 1.4 percent. Crude oil, Canada’s key export, jumped as much as 1.9 percent to $76.63 per barrel on the New York Mercantile Exchange. The manufacturing sales grew 0.1 percent in June, following the 0.5 percent advance in the month earlier. The forecasts predicted the decline by 0.4 percent.
David Watt, senior currency strategist at the Royal Bank of Canada, described the situation:

We’ve got equities that are up and tensions that have been building through the global financial system have certainly eased. That’s given a fillip to all risk-sensitive securities

USD/CAD slumped from 1.0432 to 1.0315 today as of 16:31 GMT. EUR/USD fell from 1.3379 to 1.3282 after it rose to 1.3423.

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