Loonie Gains as Crude Oil Climbs to Two-Year High

The Canadian dollar rose today as the prices for crude oil rallied to the highest level in two years and as the global economic recovery increased attractiveness of the currencies linked to growth.
The price for crude oil, the main export of Canada, climbed as much as 1.1 percent to $91.78 a barrel. The loonie, as the Canadian currency is nickname, also is benefiting from the signs of the global economic growth. The employment increase in the US was considerably better than was predicted, posting the increase by 187,000 jobs in January instead of forecast 148,000. The employment in Canada also expected to increase, probably by 18,900 jobs.
The loonie also rose versus the euro after Standard & Poor’s downgraded Ireland’s credit rating. S&P lowered Ireland’s credit rating from A/A-1 to A-/A-2, pointing on “the uncertainties surrounding the size of Ireland’s additional capital needs for its largely state-owned financial sector”.
USD/CAD traded near 0.9877 as of 02:29 GMT today after it dropped yesterday from 0.9904 to 0.9877. EUR/CAD traded at 1.3636 after yesterday’s decline from 1.3697 to 1.3640.

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