The Canadian dollar posted its biggest gains against its U.S. counterpart in almost a month after four straight days of losses as the currency failed to fall below a key technical level.
The loonie, as the currency is nicknamed, hasn’t weakened past C$1.01 per U.S. dollar since the Bank of Canada scaled back growth forecasts on Jan. 23. The relative strength index for the currency versus the greenback indicated for the past three days the Canadian dollar’s recent decline may have been too far, too fast. The nation’s economy may have grown faster in November than the month before, according to a Bloomberg News survey of economists before a Jan. 31 report from Statistics Canada.
“The market, more or less, traded pro-risk most of the day,” said Darcy Browne, managing director of currencies at Canadian Imperial Bank of Commerce’s CIBC World Markets unit, by phone from Toronto. “I think it’s just taking its indications from what else is going on, and I think two or three days of pushing on that C$1.01 top without any joy, I think the market decided to take a little profit,” he said, referring to the U.S. dollar versus the loonie.
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.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015