The Canadian dollar was fluctuating against the world's reserve currency on Thursday, one day after pushing past a significant threshold against the rival monetary unit, Reuters reports.
The Canadian dollar on Wednesday drove beyond $1.01 against the U.S. dollar, marking the first time achieving that mark since May. But Canada is preparing to release economic data on Thursday that is projected to benefit the loonie.
"There wasn't a big reaction to currency markets and it's really difficult to see what's going to move the Canadian dollar ahead of tomorrow's [consumer price index] number," senior economist and foreign exchange strategist Benjamin Reitzes with BMO Capital Markets in Toronto told The Wall Street Journal on Thursday. "It seems that we're in the dog days of summer here."
The performance of the monetary unit of Canada has been very similar to that of the U.S. dollar, which has benefited from stronger economic data in the globe's largest economy. The greenback climbed on Wednesday in response to economic data indicating industrial production grew in July the most since April.
But advances for the monetary unit of Canada were tempered by data showing manufacturing sales fell 0.4 percent in June, according to The Wall Street Journal.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
