The Canadian Dollar soared to a 26 month high yesterday against the USD, as it gained over 70 pips on the day, pushing the USDCAD pair from a day’s open of 0.9784 to a low of 0.8706 in late United Sattes Session, as the pair continues to now drop for the 4th day in a row. The pair began its recent steep decline last Wednesday; a drop that that has seen it reach levels last seen back in early 2008, as the pair has lost over 2.4% since then. The recent drop of the USDCAD pair has been attributed to the recent rise in Oil prices further to the geological turmoil that is currently taking place in Libya, one of the world’s largest exporters of Oil, and as such the reduction in supply of Oil from Libya. The Oil price, which has a high correlation with the Canadian Dollar, mainly due to the fact that Canada is also a major exporter of Oil, has helped the loony appreciate in recent days. Economic data of Canada’s Gross Domestic Product came out today at 13:30 GMT, which showed a higher than expected annualized fourth quarter GDP at 3.3%, in addition a better than expected month on month GDP which came out at 0.5% form an expected 0.3%, further spurred the Canadian Dollar and enabled it to reach its recent highs. The USDCAD pair is currently trading around the 0.9711 level and is showing no sign as of yet of a change in its recent downward momentum.

Source