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Forex: USD/CAD 5-month lows, Russian whispers resurface

Wed, Mar 10 2010, 17:01 GMT
http://www.fxstreet.com

FXstreet.com (London) - CAD was given a small boost this afternoon as oil futures firmed on the back of consumption increases. EIA inventory figures showed surpluses reducing on distillate stockpiles. USD/CAD hit session lows of 1.0215, marking a 5 month low for the pair.

The pair saw multiple bids at the floor and has rebounded back 25pips to 1.0242. Improved global consumption and economic outlook helps CAD, as USD weaken on moves away from risk aversion. Several months ago we reported on speculation over Russian buying of CAD in reserve diversification efforts, if true, this would well support the strong Loonie and indeed be a potentially causal factor.

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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