The Canadian Dollar advanced further overnight as PMI releases and Oil in North America conspired to support the Loonie. Opening this morning at 1.3296, the Canadian Dollar continues its good form from last week to reach a near 4-week high.
The Canadian Dollars good fortune began in the headlines with equity markets in particular, calmed by news US officials meet their Chinese counterparts this week for further trade negotiation. Risk sentiment turned on the news adding support for the Loonie. In other markets, Oil extended its rally from 18-month lows hit in December with support from OPEC production cuts. Crude Oil prices were up 1.3%, also assisting Canada’s Dollar valuation against its counterparts. The latest news however also forced the Loonie higher with PMI figures in the United States posting a disappointing result. Conversely, Canada’s PMI release was surprisingly positive, further exacerbating the Canadian Dollars momentum.
Moving into Tuesday, the Canadian Dollar is set to enjoy the release of their Trade Balance to guide direction ahead of the Bank Of Canada’s monetary policy statement on Thursday.