Wed, April 03, 2024 at 18:17

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    Kang-hoon

    • Good day, Annie.

    • Today, we're discussing the Canadian dollar's recent strengthening against the U.S. dollar.

    • This happened on Wednesday, as the greenback gave back some of its recent broad-based gains.

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  • Annie

    • Oh, really?😮 So the Canadian dollar is getting stronger?

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    Kang-hoon

    • Yes, indeed.

    • The loonie was trading 0.3% higher at 1.3525 to the U.S. dollar, or 73.94 U.S. cents.

  • Annie

    • Wow!

    • That's quite a change.

    • What caused this?

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    Kang-hoon

    • Well, there are several factors at play here.

    • First, the U.S. dollar fell against a basket of major currencies as U.S. services industry growth slowed further in March.

  • Annie

    • I see...so it's not just about Canada, but also about the U.S.'s economic situation?

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    Kang-hoon

    • Exactly, Annie.

    • Additionally, the price of oil, one of Canada's major exports, climbed to its highest level since October.

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  • Annie

    • Oh!

    • So that's why it's affecting the Canadian dollar too!🤔

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    Kang-hoon

    • Indeed.

    • However, despite these factors, the loonie remained within the roughly 1.34 to 1.36 range it has occupied in recent months.

  • Annie

    • Hmm...so it's not a drastic change then?

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    Kang-hoon

    • Correct.

    • It's more of a sideways movement as we wait for the Bank of Canada's policy decision next week.

  • Annie

    • Got it.

    • So, is this news good or bad for the market?

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    Kang-hoon

    • In the short term, it's good news.

    • The strengthening of the Canadian dollar and the rise in oil prices could benefit Canada's economy.

    • However, we'll need to keep an eye on the Bank of Canada's policy decision next week.

    • Upon comprehensive consideration, this news is perceived as a 😍Bullish.