"There are increasing signals that the current risk rally should continue in the near-term, which bodes well for CAD" - Camilla Sutton, Scotiabank. The Canadian dollar (Currency:CAD) has made some decent advances today, primarily on the back of a Chinese interest rate cut. A quick check of the spot's shows the pound Canadian dollar exchange rate at 15739, this being 0.34 pct lower than on yesterday's close. The US dollar to Canadian dollar exchange rate is 0.14 pct higher at 1.0147. It is worth noting that the Canadian dollar has advanced against its US counterpart despite the poor performance being experienced on Wall Street. (For the latest investment bank grade fx forecasts visit our IMT site, free access is issued via this Facebook entrance path). "CAD rallied after news from China that it has cut its interest rates and is moving into the open up 0.3% since yesterday’s close. There is no Canadian data until Friday’s employment report, leaving CAD reacting to broader trends," notes Camilla Sutton at Scotiabank. Crucially for the Canadian currency, oil prices have pushed higher, partially on the back of labour issues at Statoil; however positive news on this front was offset by a Bloomberg article which highlights that PIMCO sees little value in Canadian fixed income. "There are increasing signals that the current risk rally should continue in the near-term, which bodes well for CAD. Today’s USDCAD range is expected to fall between 1.0080 and 1.0160," says Sutton. According to Shaun Osborne at TD Securities, "The USD is holding up well in quiet trading but stimulus fever (the BoE and China have eased policy today) is keeping the commodity currencies better supported. "Commodity prices have nudged a little higher; gains in Brent have been helped by strikes cutting Norway’s North Sea oil production. This is adding to momentum trades on the crosses where the likes of EUR/CAD, EUR/AUD and EUR/NZD continue to push lower. EUR/CAD is trading at a fresh two-year low."

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