The Canadian dollar rose against safer currencies today, though fell against some riskier ones, as the risk sentiment on the Forex market was positive for the loonie. Canada’s trade balance deficit shrank more than was expected, adding to the appeal of the currency.
Canada’s trade balance deficit narrowed from C$2.5 billion in July to $1.3 billion in August. The projected deficit was C$1.8 billion. The United States, Canada’s neighbor and the biggest trading partner, also released some positive macroeconomic reports. US unemployment claims fell from 369,000 to 339,000 last week, while most analysts believed them to stay unchanged.
The Standard & Poorâs GSCI Index of commodities grew 0.8 percent and the S&P 500 Index of stocks advanced 0.2 percent. Crude oil, Canadaâs major export, was up as much as 1 percent in New York today.
USD/CAD was down from 0.9816 to 0.9786 and CAD/JPY advanced from 79.59 to 80.00 as of 19:32 GMT today. At the same time, EUR/CAD was higher from 1.2636 to 1.2653, erasing earlier drop to 1.2598.
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