The Canadian dollar has been slowly recovering from its worst start to a year since the early 1970s, according to Bloomberg.
As commodities slowly grow stronger, so too is the loonie as the national economy is underpinned by the export of native resources of the country's rich soil.
"The Bank of Canada probably is somewhat comfortable where the Canadian dollar is and where rates are, and they're unlikely to change their view on that," chief economist David Watt with the Canadian unit of HSBC Holdings Plc. in Toronto told the news source late last week. "We might not feel exactly that things are going gangbusters in Canada but the underlying trend, and hopefully with exports specifically, is we'll see better volumes."
The Canadian dollar was at its lowest value in well more than four years on January 31 against the U.S. dollar. Since then, the loonie has bounced back roughly 2 percent.
Canada is not forecast to release significant data for the remainder of this week and early next week, The Wall Street Journal reports. Canada is slated to release consumer price data for last month on February 21.
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.
