Today the Canadian dollar was near 2 months high as its chief export, the crude oil, rallied as demand for energy increases. This has favored currencies having a similar profile in foreign-exchange markets as the Australian dollar, which is a main commodity supplier for China.
Higher Crude Oil trading supports Loonie
The Canadian dollar which is also referred to as loonie, had the fourth day of advances in this week as the crude oil returned to trade high in commodity markets having future contracts closed near $ 83 a barrel.
This has given support to the Canadian dollar to rally specially against its U.S. counterpart as during most of today’s session in North America frustrating employment data reduced the attractiveness for the greenback.
For the loonie, commodity’s strength are pushing a new rally which may eventually climb towards parity with the U.S. dollar, as long as this market scenario remains the same.
Canadian dollar being one of the most attractive currencies in 2010
In the beginning of 2010 the Canadian dollar has being one of the most attractive currencies as since last December its correlation to commodities and equities markets has been fueled the loonie’s rally.
If the Bank of Canada doesn’t intervene on its rally with statements or actual measures then the loonie may touch parity with the U.S. dollar in the following weeks.
USD/CAD and CAD/JPY
Today when the market close down the USD/CAD was at 1.0293 from a previous intraday rate of 1.0348 . After high volatility at 89.94 CAD/JPY remained neutral.
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