USD/CAD near 1.06 as Commodity Prices Climb

The Canadian dollar advanced for a fourth day, the longest streak since September, as crude oil climbed to a six-week high to lead gains in commodities.

Canada’s currency touched an almost four-year low against the euro as Italy’s economy stopped shrinking and European finance ministers met in an attempt to break a deadlock on a bank-failure bill. The currency strengthened from a three-year low reached versus its U.S. peer last week when the Bank of Canada warned of inflation below its target band, bolstering bets interest rates will stay low.

“It’s a combination of crude and other commodities — copper, as well — that’s probably giving a bit of a boost to the loonie,” said David Doyle, a strategist at Macquarie Capital Markets, said by phone from Toronto. “The loonie had become a little beaten up and a lot of people had piled onto that trade. That trade has run its course, for now.”

Bloomberg

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.