Fxipips.com – The Canadian currency gained some strong momentum in ten months as prices of oil and crude rallied after indications the European Central Bank (ECB) may initiate more financial easing to lift the region's weakening economy.
The Canadian loonie was up for a second consecutive day after ending its longest-ever 13-day straight decline.
Relatively, prices of oil advanced above the $30 per barrel mark and equity markets soared after ECB President Mario Draghi disclosed that world economic risks have risen and the central bank will look into more financial stimulus this coming March.
According to Mazin Essa, head senior currency planner at the Toronto Dominion Bank, "further easing by the European Central Bank has helped to lift the European risk assets and that has a spillover effect on to the high-beta consumer currencies," adding that "the risks shift to the downside the longer that prices of oil stay at such levels."
Meanwhile, the Canadian dollar was up 1.6 pct to $1.4266 per U.S. dollar, as of 5 p.m. in Toronto trading. The currency moved up the most on a closing basis since March 18, last year. One loonie buys 70.10 cents.