The Canadian dollar rose today for the second trading session after the huge drop against the US dollar and the euro that has started in the middle of this month. The bounce was supported by favorable fundamentals, including rising stocks and commodities.
Analysts said that CAD rebounded after reaching some key technical levels. Crude oil advanced as much as 1 percent to $97.39 per barrel in New York. The Standard & Poor’s 500 Index gained 0.3 percent.
Previously, the currency was falling as the Bank of Canada scaled back its projection for global growth. The BoC predicted in its Monetary Policy Report released on January 23 that the global economy will expand 2.9 percent this year, while the previous estimate was 3.1 percent.
USD/CAD went down from 1.0060 to 1.0020 as of 19:57 GMT today. EUR/CAD dropped from 1.3536 to 1.3515. CAD/JPY was up from 90.25 to 90.49, rebounding from 89.75.
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