Canada’s dollar gained the most this week as speculation the Federal Reserve will begin slowing stimulus as soon as September weighed on demand for assets denominated in the U.S. currency.
The Canadian dollar strengthened as crude oil, the nation’s biggest export, advanced for a fifth day, the longest winning stretch since April. U.S. stocks and Treasuries dropped, while gold, which Canada produces, rallied. Claims for jobless benefits in the U.S. unexpectedly dropped and the cost of living rose, bolstering bets the Fed will soon slow its bond buying.
“All the U.S. assets are down — stocks are down, bonds are down, the dollar is down,” Marc Chandler, the global head of currency strategy at Brown Brothers Harriman & Co., said by telephone from New York. “If I’m right, we’re in a weak U.S.- dollar environment for a little bit. That means the Canadian dollar is going to strengthen; maybe there’s scope for another percent or so.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.