Wed, April 03, 2024 at 18:17

• 

  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.

  • 
• Annie

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

  
• 

  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?

  
• 

  Kang-hoon

  • Exactly, Annie.

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

  • 
• Annie

  • Oh!

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

  
• 

  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?

  
• 

  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?

  
• 

  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.