Canadian Dollar Advances with Stocks & Commodities

The Canadian dollar gained today as stocks and commodities, including crude oil, rebounded, increasing demand for currencies tied to economic growth. The currency retreated against the euro.
The Thomson Reuters/Jefferies CRB Index of 19 raw materials climbed as much as 2.6 percent. Crude oil rose above the $100 per barrel level. Raw materials makes up about half of Canada’s export revenue, while crude is the main export.
The Canadian currency gained for the third day against its US counterpart, but it’s too earlier to be very optimistic about the loonie. Experts think that the nation’s central bank is going to hold the interest rates for some time. The European Union still has its debt problems and the US economy showed signs of slowdown, and that doesn’t bode well for Canada’s export-driven economy.
USD/CAD dropped from 0.9701 to 0.9675 and CAD/JPY traded at 84.23 today as of 2:47 GMT. EUR/CAD traded near 1.3838, following the yesterday’s decline from 1.3836 to 1.3818.

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