The Canadian dollar had a mixed trading session today as fundamentals were confusing and did not give a clear direction for the currency to go. Over the longer term, the loonie still maintains its bullish bias against the US dollar and the euro and remains flat versus the Japanese yen.
Bank of Canada Governor Steven Poloz was speaking today at the press-conference regarding the Financial System Review, and he was rather optimistic. Poloz said:
It is important to note that Canadaâs financial system remains robust. It will continue to benefit from enhanced policy measures as the G-20 reform agenda is implemented, both domestically and globally.
Meanwhile, the New Housing Price Index rose 0.2 percent in April, at the same rate as in both February and March. It was a bit disappointing as economists predicted somewhat bigger increase by 0.3 percent.
The loonie (as the Canadian currency is nicknamed for the image of an aquatic bird on the C$1 coin) continues to profit from signs of economic recovery in the United States, biggest Canada’s trading partner. While the latest reports from the USA were not particularly good, the outlook for the US economy remains positive.
USD/CAD fell from 1.0867 to 1.0855 as of 21:43 GMT today. EUR/CAD traded near its opening level of 1.4704, while CAD/JPY dropped from 93.91 to 93.71.
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