The Motley Fool Discussion Boards

Previous Page

Motley Fool Global Gains / GGV: Canada


Subject:  Canadian Currency Strengthens Date:  7/10/2010  10:46 PM
Author:  Starrob Number:  18 of 36

"Canada’s currency posted its first advance in three weeks amid gains in equities and speculation the Bank of Canada will raise interest rates after a report showed job growth beat economists’ expectations fivefold.

The Canadian currency gained 2.8 percent since July 2 as crude oil, Canada’s largest export, advanced 5.5 percent. Trading in derivatives showed a higher probability of a quarter- percentage point rise in the central bank’s policy rate on July 20. The Standard & Poor’s 500 Index rallied 5.4 percent in its largest weekly gain in a year.

“It’s difficult to find any technical or fundamental reason to not own the currency,” Dean Popplewell, an analyst at online currency-trading firm Oanda Corp. in Toronto, said in an e-mail, “whether it’s growth, the Bank of Canada’s attempt to normalize rates somewhat or as a safer-haven proxy.” Popplewell predicted the currency will exceed parity during the next month"

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us