The Canadian dollar rallied together with other commodity currencies today due to the uplifted mood of Forex traders. Now, speculators focus on the central bank’s policy meeting scheduled for tomorrow.
Traders were speculating that the US central bank is not ready to start the cycle of monetary tightening just yet. Such talks bolstered prices for commodities and, by the same token, currencies related to raw materials. The loonie was one of them, and the big (almost 4 percent) rally of Brent crude oil was especially beneficial for the currency.
As today’s trading session draws to a close, market participants focus on tomorrow’s events. The most important of them for the Canadian dollar should be the Bank of Canada’s meeting. While no changes to monetary policy are expected, the wording of the bank’s statement can affect the currency in a big manner.
USD/CAD fell from 1.3307 to 1.3211 and EUR/CAD dropped from 1.4862 to 1.4803 as of 20:37 GMT today. CAD/JPY rallied 1.2 percent from 89.61 to 90.70.
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