USD/CAD drops to 1.0420 as Commodities Rally

Canada’s dollar strengthened for the first time in three days amid a rally in commodities including crude oil, the nation’s biggest export.

The currency, called the loonie, gained versus most major peers after a Canadian business barometer rose more than forecast. Crude oil, the nation’s biggest export, climbed from a five-month low. The loonie’s gains were tempered as investors awaited October employment reports for the U.S. and Canada this week that are forecast to show declines.

“Crude is up close to 2 percent, that’s probably filtering through and providing a bit of a bid for the loonie,” David Doyle, a strategist at Macquarie Capital Markets, said by phone from Toronto. “Commodities are up generally and the loonie, which is seen as a commodity type of currency, probably has some benefit from that.”

Bloomberg

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