Oil Rebound Pushes Canadian Dollar Up

The Canadian currency, which was losing earlier versus the U.S. dollar on pessimism before the G-7 meeting, managed to revert a losing trend as the crude oil rates surged beyond $70 a barrel, raising attractiveness for the loonie.

The loonie has managed to end another week gaining versus its U.S. counterpart, since it erased early losses today backed by a rally in the crude oil rates, which are one of the main raw materials produced in Canada with a final destination the U.S. The Canadian dollar ranked among the top 3 best performing currencies among the 16 majors together with the South Korean won.

Mexican Peso Down on Commodities and U.S. Unemployment

This Thursday was marked by a weak performance for the Mexican currency as the crude oil, one of the main Mexican exports to the U.S. declined further, and jobless claims in the U.S. came with worse-than-expected figures.

The United States is the country of destination for 80% of Mexican export products, and as unemployed people applied for benefits last week more than forecasts suggested, the Mexican peso was influenced negatively,. Crude oil rates also influenced negatively for the peso’s outlook, since Mexico is a large oil producer.

Pounds Ends Another Week Down on Crisis Concerns

The pound has been one of the most affected currencies by the credit crunch last year and during the past three weeks it suffered another substantial decline as the U.K. economic scenario continues to deteriorate and this Friday risk aversion is high again pushing investors towards safety.

Today the British currency found obstacles to climb in both domestic and international economy scenarios, as risk aversion rose globally.Nationwide Building Society indicated today a worse than previous forecast for house prices increase in the U.K., raising concerns on the real estate market which was one of the most impacted by the global slump last year, especially in England. Equities markets in the U.K. and overseas also had a negative day before a G-7 meeting which may approach sensitive topics regarding the economic future in the world’s wealthiest nations, forcing investors to opt for safer assets and damping demand even further for the U.K. pound.

Euro Falls Before G-7 Meeting

The euro, which has been one of the strongest currencies among major pairs this year, fell today before speculations suggested that a Group of 7 finance ministers meeting this week will approach the current euro strong valuation, raising concerns and damping demand for the Eurozone currency.

A drop in the euro price versus most of the 16 main traded currencies could be perceived today in markets before G-7 central bankers meeting in Sweden today is likely to discuss the current euro rates and eventually provide statements indicating that a strong European currency, at certain levels, may cause problems for the economic recovery in the region, causing traders to evade euro-priced positions opting for the U.S. dollar and higher-yielding options in the South Pacific region. The yen was one of the few currencies which was unable to gain versus the euro, as reports in South Korea shifted attractiveness out of Japan in the Asiatic region.

Canadian Dollar Roses Sharply on Commodities

The Canadian dollar, one of the most dependent currency to stocks and commodities, climbed significantly today as optimism pushed the crude oil and gold rates up, suggesting that the global economy will improve demand for Canadian exports.

The loonie, as the Canadian dollar is often referred, witnessed a significant rally today being the sharpest climb in September provoked by optimism that increased risk appetite among traders as commodities rose and the International Monetary Fund cut its forecast for global economic declines, adding to the already positive sentiment in trading markets today.

Brazil’s Real Drops From Year High on U.S. Jobless Claims

The Brazilian currency touched a one-year high versus the dollar and the pound this week but was unable to continue its rally as U.S. jobless claims came worse than what economists expected, decreasing appeal for emergent market high-yielding currencies.

The Brazilian real is an extremely commodity-linked currency, and today, a report indicated an increase in jobless claims in the U.S., affecting negatively equities and commodities markets worldwide, making traders to purchase safer assets and abandon some less attractive opportunities in Brazilian markets, forcing the real down from a one-year high versus the dollar.