The Canadian dollar climbed against its US counterpart yesterday and extended the rally today on signs of the global economic recovery. The currency also advanced versus the euro, though retreated a little today, while against the Japanese yen Canada’s dollar was falling.
The positive outlook for the global economy, which has appeared on the Forex market last week, continued to prevail at the beginning of this week. The expansion of China’s manufacturing alleviated fears of global economic slowdown to some degree. Additionally, the report of Institute for Supply Management confirmed that US manufacturing continues to expand.
Mark Carney, the Governor of the Bank of Canada, said yesterday:
Conditions in the Canadian economy have also been somewhat stronger and the degree of slack somewhat smaller than the Bank had expected. Growth has been a bit quicker in recent quarters, reflecting a combination of temporary factors as well as improved confidence and better financial conditions.
USD/CAD was down from 0.9956 to 0.9905 yesterday and traded at 0.9893 as of 3:41 GMT today. EUR/CAD was at 1.3199 today, following the drop from 1.3299 to 1.3192 yesterday. CAD/JPY traded at about 82.73 after it fell from 83.30 to 82.81 on the previous trading session.
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