BLBG: Canadian Dollar Rises For First Time In 3 Days After ECB Meeting
Canada’s dollar strengthened for the first time in three days versus its U.S. counterpart as stocks climbed amid an improving outlook for currencies tied to global demand.
The currency fell yesterday after the Federal Reserve’s pledge to provide additional support for the economy disappointed investors anticipating a more definitive sign of further monetary easing. It stayed higher today after the European Central Bank held its policy rate unchanged. ECB President Mario Draghi holds a press conference at 8:30 a.m. New York time.
“It will depend on what Draghi says,” Shane Enright, executive director in Toronto at Canadian Imperial Bank of Commerce’s CIBC World Markets unit, wrote in an e-mail. “The market has already pared back expectations of what they can deliver today, so I’d say we see some mild disappointment. We continue to like the Canadian dollar on a relative value basis.”
Canada’s currency, nicknamed the loonie, rose 0.3 percent to C$1.0030 per U.S. dollar at 7:56 a.m. in Toronto. One Canadian dollar buys 99.69 cents.
To contact the reporter on this story: Chris Fournier in Halifax at cfournier3@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
