By TraderVox.com
Tradervox (Dublin) – Canadian dollar rose by most in a month after the US manufacturing report showed that manufacturing increased by more than it had been forecasted. This improved the prospects of Canada’s crude oil export to the US increasing the loonie by 0.7 percent.
The Canadian dollar increased against the greenback on signs of stronger economic growth in the US. Further, positive reports from China eased negative prospects of the country’s economy after a manufacturing report released yesterday showed an increase. In addition, Mark Carney, the Bank of Canada governor, indicated that the nation’s economy had performed much better than the forecast.
The positive data from US and Canada have increased risk appetite in the market causing the dollar to lose grounds against major currency. According to Adam Cole, a Global Head of Foreign-Exchange Strategy at Royal Bank of Canada in London, there is a general appetite for risk precipitated by the positive data coming from the US.
The loonie increased against the dollar by 0.7 percent to trade at 99.15 cent per US dollar. It had climbed by 0.8 percent against the euro buying the euro at C$1.3219. The Canadian dollar had dropped to its least since February earlier in the day trading at C$1.3351 per euro.
The US dollar had declined against most of its peers after positive reports of economy recovery have been released causing an increase in risk appetite. The US dollar had dropped against the New Zealand and the Australian dollars. The dollar has started the week on a bearish trend which is expected to expend to Tuesday as another report on factory orders is expected to show that the economy is recovering well.
The Australian dollar has continued with its gains against the greenback as RBA members are expected to meet today to discuss the monetary policy. There is no consensus on whether the RBA will increase the interest rate or keep it at the current level. Some analysts who expect the RBA to keep the current interest rates have indicated that the current reports from US have shown global economic stability hence RBA might be upbeat about the economy.
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