The Canadian dollar was rising against the US dollar, than sharply dropped, and now is trying to rebound as the global and the domestic fundamentals looks favorable for the currency. The currency slipped against the euro.
Mark Carney, the Governor of the Bank of Canada, voiced his concern about the strength of the Canadian currency last week in the interview at the World Economic Forumâs annual meeting:
One of the risks to the Canadian economy is persistent strength to the Canadian dollar. We have a competitiveness problem in Canada.
For now, Canada’s economy looks rather strong, though. Canada’s gross domestic product rose 0.4 percent in November after growing by 0.2 percent in October, while the rate of growth was expected to remain the same. Crude oil, the main Canada’s export, jumped as much as 3.1 percent to $92.09 per barrel. The favorable fundamentals can make it possible for the loonie, as the Canadian currency is nicknamed, to reach parity with the greenback yet again.
USD/CAD traded near 1.0011 as of 21:10 GMT after it opened at 1.0007 and reached its intraday high of 1.0057 and the intraday low of 0.9961. EUR/CAD jumped from 1.3589 to 1.3776 and then retreated to 1.3699.
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