The Canadian dollar gained today versus most its major peers as the signs of stronger US economic growth and anticipation of new round of quantitative easing in the US improved prospects for the Canadian currency.
Canada and its currency depend on the economy of the United States as the US is the major trading partner of Canada. Therefore, better prospects of the economic growth of Canada’s neighbor help the Canadian currency. US durable goods orders rose 4.0 percent in July, following the 1.3 percent decline in June. That’s almost two times higher than the expected figure of 2.1 percent.
The loonie, as the Canadian currency is nicknamed, was rising against the US dollar, but lost its gains as the positive news from the US benefited the greenback more. The loonie erased its earlier losses versus the franc and currently fluctuates against the Swiss currency. The Canadian dollar managed to gain against other commodity currencies, including the Australian dollar.
USD/CAD rose from 0.9872 to 0.9879 as of 19:07 GMT today after it reached earlier the daily minimum of 0.9838 and the daily maximum of 0.9904. CAD/CHF advanced from 0.8020 to 0.8037, following the drop to 0.7974. AUD/CAD sank from 1.0391 to 1.0339.
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