Written BY: Kristin Craik
The Canadian dollar attained a three and a half year high today reaching a currency high of $1.04 USD. Speculated to continue to rise further by 2012, the CAD dollar strength comes amongst record gold prices.
According to the CBC, Canadian currency rose 0.75 of a cent clearing 104.5 US Wednesday morning, its highest level since November 2007. Experts are speculating a continued rise, ending its climb at $1.05 by 2011 year end and $1.09 by the end of 2012.
Adding to the influence of gold price strength, oil prices have had significant power in helping the loonie climb to its highest rate. Oil prices lingered around $108 a barrel today rising from the continued unrest in Libya and a weaker US dollar. Overall, crude prices have jumped up 27 per cent since February of this year.
Oil prices have always directly influenced the Canadian dollar. Historically, for every $10 move in oil prices means a similar move of three to five cents US for the Canadian dollar.
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Another fluctuating price affecting the market is copper prices. Advancing because of a May contract in New York, prices have risen to $4.32 a pound. TD Raises Canada’s Economic Growth Forecast
With the Canadian economy strengthening and its exceeding expectations in March, it isn’t a surprise that the loonie is following suit.
Traders are currently anticipating Friday when it is speculated that Statistics Canada will release a report stating strong Canadian employment figures that are forecasted to show the economy added 30,000 new jobs in March.