The Canadian dollar rebounded today as the improving risk appetite pushed the stocks and crude oil higher and increased the appeal of the currencies linked to the economic growth.
The MSCI World Index rose as much as 2.6 percent. October delivery for crude oil went up as much as 3.5 percent to $74.48 per barrel on the NYMEX. The risk sentiment improved after the manufacturing in the US and China expanded with faster pace in August. The US Manufacturing ISM Report on Business showed that “economic activity in the manufacturing sector expanded in August for the 13th consecutive month, and the overall economy grew for the 16th consecutive month”.
Just as we began wonder if the Canadian dollar turned out to be much weaker than it appeared, the currency showed that it retained some of its strength. Actually, the analysts think that the greenback may decline against the loonie after it failed to breach the C$1.0679 resistance level. They point out that the triple top (three consecutive peaks around the same height) occurred, possibly foreshadowing the future decline of USD/CAD.
USD/CAD traded near 1.0522 today as of 19:23 GMT, after opening at 1.0654 and falling as low as 1.0484. EUR/CAD fell from 1.3507 to 1.3466, following the jump to 1.3584, the highest level since August 11th.
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