DY: Canadian Dollar Refuses to Acknowledge Broader USD Demand
The relative strength in the Canadian Dollar in early 2010 has been very impressive with the single currency outperforming across the board in the European session despite the lower equity and commodity prices.
The relative strength in the Canadian Dollar in early 2010 has been very impressive with the single currency outperforming across the board in the European session despite the lower equity and commodity prices. While there has been no short-term fundamental justification for the moves, many have been attributing the strength to reserve diversification and the shifting from many nations into Canadian Dollar reserves. The solid economic fundamentals in Canada and healthy flow of natural resources have made the commodity currency highly attractive and many now see the Loonie as an attractive diversifier from USD exposure. The Canadian Dollar is the only currency that shows gains against the buck on the day, while even the Australian Dollar pulled back despite the very healthy round of data overnight.
