The Canadian dollar rose in value on Monday against the world's reserve currency prior to the release of economic data about the country's business climate, according to The Canadian Press.
Conducted last month and in May, the business climate data is used by the central bank to assess economic strength and project the near-term performance.
On Monday morning, the currency of Canada was near the highest value it touched during the first half of this year. But some said the Bank of Canada actually prefers to see a weaker loonie because that is beneficial for exporters.
But a recent poll administered by Reuters suggested the loonie's heyday soon might drop off. The Canadian dollar is approaching what some said will be its highest value this year.
"We're expecting a pullback at this point," senior currency strategist Greg Moore with Royal Bank of Canada told Reuters on Monday. "In order for exports to truly pick up, and that being the key area that's expected to drive the economy in the coming years, it does mean the loonie should have to depreciate before we see some more sustainable growth."
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.
