Tuesday saw the monetary unit of Canada advance against the U.S. dollar as speculation mounted about major nations' central banks preparing to intervene and strengthen their respective economies, according to Reuters.
Amid the reduced pace of manufacturing, investors, traders and other observers are eyeing the financial institutes for indications about strategies and techniques of developing economies amid slowdowns. In the U.S., a top trade partner to Canada and the host of the globe's largest economy, the U.S. Institute for Supply management noted the sector last month contracted for the first time in almost three years.
One strategist said a third round of quantitative easing, more commonly referred to as QE3, might occur as early as next month.
"It's still very much a risk-on, risk-off trade. It doesn't appear that domestic indicators are much of a factor at all," Canadian fixed income and currency strategy head Mark Chandler with RBC Capital Markets told the news source.
The first trading day of the second half of 2012 saw the Toronto stock market performing strongly, according to The Canadian Press. Markets were closed in Canada on Monday in observation of Canada Day.
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