Loonie Rallies as US Economy Shows Signs of Recovery

December 23, 2011 07:26 AM | 0 Comments
The Canadian dollar advanced for the third day against the US currency and for the fourth straight session versus the euro and the Japanese yen as the signs of the economic recovery in the United States eased the pessimism caused by the problems in Europe.

The Canadian dollar advanced for the third day against the US currency and for the fourth straight session versus the euro and the Japanese yen as the signs of the economic recovery in the United States eased the pessimism caused by the problems in Europe.

The Conference Board leading indicators rose 0.5 percent in November, more than was predicted by analysts. The US gross domestic product expanded 1.8 percent in the third quarter. That’s less than the figure market participants hoped for and that was previously estimated (2.0 percent), but the rate of growth was higher than in the second quarter (1.3 percent). Tomorrow’s report is expected to show that Canada’s economy also expanded.

It looks like traders turned their attention away from Europe to the USA and were pleased with what they’ve seen. The Standard & Poor’s 500 Index rose 0.5 percent today and gained 2.8 percent during this week. The S&P/TSX Composite Index added 0.1 percent and was up 2.3 percent over the week.

USD/CAD dropped from 1.0261 to 1.0211 and EUR/CAD went down from 1.3385 to 1.3322 as of 17:14 GMT today. CAD/JPY rose from 76.01 to 76.46.

Source: www.topforexnews.com

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