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Date and page printing time: November 21th 2009 04:57 GMT
Trade's Tools | The FOREX market news
DJMN: Canada Afternoon: C$ Ends Up, Outperforms As Gold, Oil Rally
TORONTO (Dow Jones)--The Canadian dollar ended higher Tuesday, outperforming most other widely traded currencies against the U.S. dollar on support from resurgent gold and oil prices, and also technical factors.
The U.S. dollar was trading at C$1.0688 at 3:32 p.m. EST (2032 GMT), from C$1.0800 at 8:00 a.m. EST (1300 GMT), and from C$1.0797 late Monday.
On a day where caution and risk aversion prevailed ahead of monetary policy announcements from the U.S., the euro-zone, and the United Kingdom due over the next two days, the Canadian dollar was a notable outperformer, snapping back from recent one-month lows while other currencies languished with moderate losses against the U.S. dollar.
Most of the Canadian currency's outperformance was commodity-related, as gold prices soared to new record highs and oil prices also rebounded from initial weakness and moved back closer to the $80-a- barrel mark.
"It was a commodities story mostly," said Jon Gencher, director of foreign exchange sales at BMO Capital Markets in Toronto, adding that technical considerations also favored the Canadian dollar Tuesday.
"And given all the risk aversion that's developed recently, I think Canada outperformed more on the fact that the market wasn't as long the Canadian dollar as it was some of the other currency pairs," said Gencher.
The Canadian dollar has been wavering erratically over the past several trading sessions near the weaker extremes of its recent trading range, partly in response to persistent voicing of concerns from the Bank of Canada and elected officials about the economic perils of a strong currency, and partly due to a widespread resurgence of risk aversion as doubts have risen about the strength and sustainability of global recovery efforts.
Gencher and others suggested the Canadian dollar's flirtation with one-month lows could give way to a sustainably stronger tone over the near term, especially if Wednesday's U.S. Federal Reserve policy statement, and the statements Thursday from the European Central Bank and the Bank of England, succeed in shoring up confidence in recovery and overcoming some of the recent shying away from risk in global markets.
These are the exchange rates at 3:32 p.m. EST (2032 GMT), 8:00 a.m. EST (1300 GMT), and late Monday.
USD/CAD 1.0688 1.0800 1.0797
EUR/CAD 1.5860 1.5821 1.5931
CAD/JPY 84.63 83.47 83.74
-By Paul Evans; Dow Jones Newswires; 416-306-2022; paulr.evans@dowjones.com
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(END) Dow Jones Newswires
November 03, 2009 15:35 ET (20:35 GMT)
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