Investing.com – The Canadian dollar soared to a fresh daily high against its U.S. counterpart on Monday as risk appetite sharpened in the wake of China’s yuan float and oil prices surged.
USD/CAD hit 1.0214 during European midday trade, a fresh daily high and a 5-week high; the pair subsequently consolidated at 1.0165, shedding 0.53%.
The pair is likely to find resistance at 1.0337, Thursday’s high and support at 1.0099, the low of May 3.
On Saturday, the People’s Bank of China announced that it would allow the yuan to trade in a 0.5% daily trading band against the U.S dollar. The move signaled the bank’s increased optimism with regard to China’s economic growth and the global economic recovery and precipitated a rally in global stocks and commodity prices.
The Canadian dollar was also up against the yen, with CAD/JPY gaining 1.23% to hit 89.86.
Earlier Monday, Japanese finance minister, Yoshihiko Noda, lauded China's announcement to allow more flexibility in the yuan, saying: "I expect it to be a plus for the China and Asia economies as well as the world economy.”
USD/CAD hit 1.0214 during European midday trade, a fresh daily high and a 5-week high; the pair subsequently consolidated at 1.0165, shedding 0.53%.
The pair is likely to find resistance at 1.0337, Thursday’s high and support at 1.0099, the low of May 3.
On Saturday, the People’s Bank of China announced that it would allow the yuan to trade in a 0.5% daily trading band against the U.S dollar. The move signaled the bank’s increased optimism with regard to China’s economic growth and the global economic recovery and precipitated a rally in global stocks and commodity prices.
The Canadian dollar was also up against the yen, with CAD/JPY gaining 1.23% to hit 89.86.
Earlier Monday, Japanese finance minister, Yoshihiko Noda, lauded China's announcement to allow more flexibility in the yuan, saying: "I expect it to be a plus for the China and Asia economies as well as the world economy.”