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Canadian Dollar Surges as USA Avoids Default

October 17, 2013 at 4:38 by Vladimir Vyun

All the Canadian dollar bills denominationsThe Canadian dollar surged after US politicians reached a deal about raising the debt limit and ending the government shutdown. It was a huge relief after the prolonged period of uncertainty and riskier currencies profited from it.

The Senate agreed to pass the bill without any conditions attached regarding the health reform of President Barack Obama. The President said:

Once this agreement arrives on my desk, I will sign it immediately,” Obama said tonight at the White House. “We’ll begin reopening our government immediately and we can begin to lift this cloud of uncertainty from our businesses and from the American people.

News from Canada was not as good, as was showed by the manufacturing sales that contracted 0.2 percent in August instead of rising 0.3 percent as was expected. Yet the data was overshadowed by the end of the crisis in the United States (even though some analysts called kicking can down the road).

USD/CAD was at 1.0319 a of 4:36 GMT today after tumbling from 1.0380 to 1.0325 yesterday. EUR/CAD traded at about 1.3976 following the slump from 1.4037 to 1.3974. CAD/JPY rallied from 94.48 to 95.59 on the previous trading session but retreated a bit to 95.47 on today’s session.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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