Canadian Dollar Firms by End of Thursday’s Trading

The Canadian dollar had been falling against its US counterpart and the euro during the most part of the Thursday’s trading session. Yet as of now, the currency has managed to erase losses versus the greenback and to pare the decline against the currency of the eurozone. On top of that, the loonie rallied versus the Japanese yen.
The most likely reason for the improving performance is the rally of crude oil prices. Futures for crude gained 0.82 percent in New York as US inventories of the commodity shrank last week more than analysts had anticipated.
Economic data from Canada was supportive as well. While the current account deficit widened in the first quarter of 2015, the increase was not as big as economists’ forecasts. The Raw Materials Price Index rose in February, propelled higher by rising prices for oil.
Yesterday, the Bank of Canada decided to keep its interest rates stable.
USD/CAD traded at about 1.2431 as of 21:23 GMT today following the rally from 1.2451 to 1.2538. EUR/CAD was up from 1.3575 to 1.3620 but retreated from the daily high of 1.3671. CAD/JPY gained from 99.24 to 99.62.

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