The Canadian dollar rallied to the highest level since March against the Japanese yen and advanced versus the US dollar after the Federal Reserve expanded its asset purchase program. The currency retreated against the euro.
Traders have expected that the Fed would add stimulus and the US central bank did not disappoint. The resulting risk appetite lifted riskier assets, including stocks and commodities. Crude oil, the major Canadian export, advanced 0.8 percent to $86.47 a barrel in New York. The MSCI World Index of shares added 0.3 percent.
The loonie also got help from domestic fundamentals. Canada’s trade balance deficit shrank from C$1.0 billion in September to C$169 million in October instead of rising to C$1.2 billion as was predicted.
USD/CAD went down from 0.9859 to 0.9846 as of 23:58 GMT, touching 0.9825 intraday — the lowest price since October 18. CAD/JPY jumped from 83.64 to 84.46 and its daily maximum of 84.66 was the highest since March 21. Meanwhile, EUR/CAD advanced from 1.2822 to 1.2865.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.
