Canadian Dollar Strong on Back of Positive Data, Crude Oil

The Canadian dollar was strong today, rising against many of its rivals. The major reasons for the currency’s rally were positive domestic macroeconomic releases and a rally of crude oil prices. The general market sentiment was also supportive of riskier currencies tied to commodities.
Canada Mortgage and Housing Corporation reported that the number of housing starts climbed to 244,963 in January up from 238,747 in December. That was a far bigger amount than the 236,000 predicted by specialists.
According to a report from Statistics Canada, manufacturing sales jumped by 0.9% in December, smashing the analysts’ projections of a 0.2% increase. Wood product, transportation equipment, and petroleum and coal product industries led the gains. Overall, increases were registered in 9 of 21 sectors. The previous month’s decline got a revision from 0.6% to 0.4%.
Adding to the upside momentum of the loonie was the rally of prices for crude oil — Canada’s biggest export. West Texas Intermediate grade, the North American benchmark, topped the $60 level for the first time in more than a year. Crude soared after the news that the Iran-backed Houthis attacked an international airport and an airbase in Saudi Arabia.
USD/CAD fell from 1.2682 to 1.2633 as of 17:35 GMT today. EUR/CAD slumped from 1.5375 to 1.5329. CAD/CHF surged from 0.7012 to 0.7046.
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Original from: www.earnforex.com