The Canadian dollar was little changed today following yesterday’s big jump. The rally was caused by both domestic fundamentals and developments on the global markets that were largely beneficial for the loonie.
Canadian manufacturing sales jumped 2.5 percent in July to a new record. Bank of Canada Governor Stephen Poloz voiced hope for revival of exports, particularly energy products. As an echo of such outlook, prices for crude oil, the major Canada’s export commodity, rose to the highest level in two weeks.
The Canadian currency was also riding higher on the back of the US dollar’s weakness. The greenback retreated as market participants started to speculate that the monetary policy statement, released today by the Federal Reserve, will not be especially hawkish, keeping the pledge to maintain interest rates low for a “considerable time”.
USD/CAD traded at about 1.0980 as of 1:58 GMT today after sinking from 1.1054 to 1.0968 at the previous trading session. EUR/CAD was near 1.4221 following the slump from 1.4304 to 1.4214. CAD/JPY traded at 97.67, close the highest level since January 7, at the current session after jumping from 96.94 to 97.65 yesterday.
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