Parity with the US dollar is now being measured in days rather than months as the Canadian dollar surged to a 14 month high of C$1.0252 to the U.S. dollar (97.54 U.S. cents) Tuesday morning.
“The better background for U.S. corporate results is reflective of a better macro background and that is positive for currencies that are most plugged into the economic cycle and Canada leads the charge in the respect,” said Adam Cole, global head of FX strategy at RBC Capital Markets in London.
“So the strength of equities, the strength of the Canadian dollar and the strength of commodities all reflect the better risk and growth background that markets are discounting.”
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