Is Canadian Dollar Becoming Safe Currency?

The first half of this week wasn’t very good for the Canadian dollar, but the losses were offset in the second half, when the currency surged upward even though the sentiment was favoring safety.
The discouraging macroeconomic data and the strong performance of most other currencies have led to the weakness of the Canadian dollar. Yet on Thursday the loonie, as the Canadian currency is often nicknamed, reversed the trend. The gains erased the losses against some currencies and even allowed to post a weekly gain against others.
The rally can be explained by the good economic reports from the US, the major trading partner of Canada, and some signs of the economic growth in Canada. But what’s more interesting was the twist in the behavior of the Canadian currency. The loonie, being the currency related to growth, usually tends to rise in the times of stability and to fall in times of uncertainty, thus moving inversely to the US dollar, which is the safe currency. But in the second half of the week the greenback was rising and commodities were falling. Yet the Canadian dollar was rallying, thus moving along with the US currency, not commodities. And so the interesting question arises: was that just a temporary trend or we were seeing the emergence of a new safe currency.
USD/CAD closed at 0.9867, near the opening level of 0.9871, after it jumped as high as 0.9987. EUR/CAD opened at 1.3392 and closed at 1.3367 after reaching the weekly high of 1.3658. CAD/JPY opened at 83.29, fell to 82.34 and then advanced to 84.54. AUD/CAD closed at 0.9886 after opening at 1.0003 and touching the weekly high of 1.0125.

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