The Canadian currency started another week strong versus several main traded currencies, specially lower yielding options, as demand for commodities continues to bring capital to Canada, the biggest oil supplier for the United States.
The rising demand for energetic and metallic commodities is helping the loonie to remain as one of the best bets in
Analysts are very confident regarding the loonie’s strength as no fundamental or technical factor is so far being an obstacle for its advance. The Bank of Canada may, at some point, halt its currency rally, as it had already done it in late 2009, alleging that a strong currency may affect the country’s exports, and consequently, its recovery.
USD/CAD currently trades at 1.0306 as of 14:17 GMT after bottoming at 1.0250 two hours earlier, and from as high as 1.0372 last Friday.
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