The brighter outlook for the economic growth of the US and China bolstered the stocks and the commodity prices today, improving the risk sentiment. The investors’ willingness to risk benefited the Canadian dollar, which jumped to the highest level in three weeks.
Chinaâs industrial output advanced 13.9 percent in August from the previous year and the annual growth of the retail sales were 18.4 percent last month. The report about the US retail sales will be released tomorrow; the analysts expect it to show the 0.3 percent growth. The Standard & Poorâs 500 Index rose 1.1 percent and October delivery for crude oil, the main Canadian export, reached $78.04 per barrel.
The sentiment also improved after the Basel Committee on Banking Supervision gave lenders eight years to comply with higher capital requirements. The optimistic mood helped to appreciate the currencies linked to the economic growth, including the Canadian dollar.
USD/CAD went down from 1.0333 to 1.0284 today as of 17:02 GMT after dropping to 1.0268, the lowest level since August 19th. The euro was bolstered by the good sentiment even more than the loonie, therefore EUR/CAD rose from 1.3129 to 1.3230, following the advance to the intraday high of 1.3253.
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