Plenty of Reasons for Canadian Dollar to Rally

The Canadian dollar gained against safe currencies, namely the US dollar and the Japanese yen, today. The currency also trimmed its losses versus the euro though remained below the opening level against the shared 19-nation currency.
There were plenty of reasons for the Canadian dollar to rally. The most important of them was the rally of crude oil. Another one was the weakness of the US dollar after a stream of disappointing macroeconomic data from the United States.
Domestic fundamentals were also mildly supportive for the loonie as the Raw Materials Price Index weakness of the US dollar but not as much as analysts expected. Market participants will watch for the very important employment report from Canada that will be released on Friday.
USD/CAD dipped from 1.2561 to 1.2422 while CAD/JPY rallied from 93.49 to 94.37 as of 17:49 GMT today. EUR/CAD traded at 1.4259 after rallying from 1.4243 to 1.4345.

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