Canadian dollar is fluctuating today between 1.0058 and 1.0094 versus its US counterpart. Such dynamics can be explained by the fact that the Federal Reserve stayed loyal to its plan of purchasing $600 billion of Treasuries up to June, while the oil price was quite volatile.

The Bank of Canada Governor Mark Carney claimed yesterday that persistently strong loonie may harm the country’s economic growth, while the latest round of quantitative easing should have a positive but small impact on Canadian economic growth.

Currency strategists at National Bank of Canada note that it seems that the greenback will be declining that, in its turn, will give commodities some positive momentum supporting Canada’s currency.

Crude oil for January delivery traded at $88.26 a barrel in New York, down 0.4%, after gaining 0.4% and falling by 1%. The yield on Canadian 10-year government bonds reached 3.372, the maximal level since June 21.



Chart. H4 USD/CAD

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