Forex: USD/CAD 5-month lows, Russian whispers resurface
Wed, Mar 10 2010, 17:01 GMT
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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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