The major currency of Canada, the Canadian Dollar, or as it is called fondly, Loonie, increased today, thereby approaching to the strongest level in a week against USD. The biggest export of the country, crude oil also jumped ahead, accompanied by the stocks, thanks to the increase in risk appetite.
A Government report is expected to be published right on this week and the same is forecasted to show that that the economic growth of the country has slowed down in January. The gauge of the European industries shrank less than the initial expectations and that increased the appetite of investors for the higher yielding assets.
Loonie actually posted a gain of 0.2% against the greenback and is currently priced at 99.67 cents per USD. Only yesterday, it went to 99.48 cents per USD, marking the strongest value since 23rd January, however, later on that day, it experienced a drop of 0.3%. The currency is now in a stronger position than the moving average of the same of 200 days for 4th straight day. Incidentally, moving averages are regarded as probable turning points by many traders as these indicate the momentum of a particular currency.
The 10-year Canadian Government bonds experienced a decline, thereby helping the yields to get up by 4 basis points. The yields are currently at 2.02%. The 2.75% securities which will mature in June, 2022 experienced a decline of 35 cents and are at C$106.13.
According to the Canada Macro Strategist of the TD Securities Unit of the Toronto Dominion Bank, Mazen Issa, the increases mark modest positive figures. Mazen commented further as the currency experienced a sharp decline on last day, today’s growth is kind of a bounce back on top of that. According to the Currency Market Analyst of Monex Europe, Eimear Daly, Loonie is now looking for a direction.
The Canadian Government is going to auction three-year notes worth $2.7 billion right on this week. The 1.25% securities are actually due in February, 2016. By end of this week, more details on the scheduled 2-year note auction are expected to be published by the Bank of Canada.
Apart from the Loonie, the commodities including Crude Oil posted gains. The futures on the Crude Oil increased by 0.7% and are at $96.83 per barrel. Incidentally, raw materials account for half of the total revenue of Canada from exports.