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USD/CAD Moves to Below 1.02 on Economic Growth Signs

The Canadian dollar had its biggest gain in almost four months against its U.S. counterpart as crude oil, the country’s biggest export, rallied on stronger-than- forecast economic data from the U.S. and the U.K.

The currency strengthened versus most of its major peers as a report in the U.S. showed initial claims for unemployment insurance fell more than forecast last week. The U.K. avoided a triple-dip recession with stronger than expected growth in the first quarter and crude oil saw its biggest two-day jump in nine months.

“After five days of gains in risk assets the dam has finally broken in dollar/CAD,” said Adam Button, a currency analyst at forexlive.com, by phone from Montreal. “The pair had been resistant against better news in the stock market and the European bond market for a number of days, but now with the rallies in oil and gold today the Canadian dollar can no longer overlook the obvious good news in risk assets.”

Bloomberg [1]

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