John Curran, a Canadian Forex ltd Vice President, said that people are taking risk off as they turn around, some buying the loonie against some currencies while others are selling the loonie against other currencies hence making the USD/CAD outlook vague. The Canadian dollar also rose as the Standard & Poor’s 500 Index remained unchanged after falling by 0.6 percent; the Thomson Reuters/Jefferies CRB Index showed an increase of 0.7 percent.
Further, the minimal advance by the loonie came as the Bank of Canada sold $3.3 billion worth of five-year notes at a yield of 1.24 percent which is lower than the previous sale on May 9 of 1.53 percent. Some currency strategists such as Firas Askari of bank of Montreal noted that this is a tight summer and the market might not be a volatile as it should be. There are also economists who have indicated that the Canadian government bonds will have weaker yields as the US economy continues to weaken.
The Canadian dollar appreciated by 0.3 percent against the greenback to trade at C$1.0198 at the close of trading yesterday.