The Canadian dollar behaved similarly to some other currencies, including the Australian dollar and the Great Britain pound, falling initially but bouncing later today.
The most likely explanation for the choppy movement were changes in the traders’ sentiment. While initially risk aversion prevailed on the market, later speculators felt less need for a safe haven.
The Canadian dollar had also own factors for determining its behavior. Among positive ones was the rally of crude oil prices due to the treat of a hurricane in the Gulf of Mexico. Among negative ones was the housing starts report from Canada Mortgage and Housing Corporation. It showed that housing starts decreased to 189,000 in September, down from 200,000 in August, demonstrating the biggest drop and reaching the lowest level since November 2016. Analysts had expected a small increase to 203,000.
USD/CAD opened at 1.2959, rallied to the daily high of 1.3003, but retreated to 1.2945 as of 19:17 GMT today. EUR/CAD declined from 1.4892 to 1.4875, touching the low of 1.4856 intraday. CAD/JPY traded almost flat at 87.29 after falling to the daily low of 87.01.
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