Canadian Dollar Opens Sharply Higher as Week Starts with Shock

The Canadian dollar opened sharply higher against its major rivals as the news from the United States shocked markets. The currency struggles to establish a clear trend, though, rising against some peers but falling below the opening against others.

Markets were in turmoil at the start of the trading week due to the news that the Federal Bureau of Investigation found no signs of crime in Hillary Clinton’s emails. It changed the outlook for the outcome of the US presidential elections, and thus made traders to hastily adapt their strategies to the new environment.

As for news affecting the Canadian currency specifically, the rally of crude oil provided a reasons for the loonie to go higher. Yet there were reasons to doubt that the oil’s rally will be long-lived, therefore its impact on the currency was limited.

As for economic data from Canada, this week will be light on reports, therefore the main drivers for the Canadian dollar should be moves of crude oil prices and news from outside of Canada (the United States in particular).

USD/CAD traded at about 1.3361 as of 19:28 GMT today after closing at 1.3399 on Friday, opening at 1.3342, and rising to 1.3417 intraday. EUR/CAD trade basically at the opening level of 1.4747 after closing at 1.4924 last week and touching the daily high of 1.4867 today. CAD/JPY closed at 76.88 on Friday, opened sharply higher at 77.88 on Monday, touched the daily low of 77.55, but bounced to 78.20.

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