This is primarily for Noxx and OMG and my earlier reply to them in this thread about Canada’s fundamentals. Enjoy it guys! Your country has been more fiscally responsible than most and you are rich in natural resources.
Oz
Canadian Dollar Gains the Most Since at Least 1971 on Oil, Gold
Oct. 29 (Bloomberg) -- The Canadian dollar gained the most in at least 37 years as its U.S. counterpart weakened versus most of the world's major currencies and commodities including oil, natural gas, copper and gold increased.
Canada's dollar rose the most since at least 1971, when Bloomberg records begin. It has strengthened 4.1 percent since Oct. 24, after declining during four straight weeks. Crude oil accounts for 21 percent of the weighting in the Bank of Canada Commodity Price Index, the largest component.
``There is a glimmer of hope now that the doom and gloom reflected in investor flows was overdone,'' said Samarjit Shankar, director of global strategy for the foreign-exchange group in Boston at Bank of New York Mellon. ``Investors are getting back into assets and currencies, like Canada's, that were strongly sold off recently.''
The Canadian dollar increased as much as 5 percent to C$1.2126 per U.S. dollar, from C$1.2732 yesterday. The currency traded at C$1.2205 at 3:20 p.m. in Toronto. One Canadian dollar buys 81.98 U.S. cents.
Crude oil for December delivery gained as much as $6.18, or 9.9 percent, to $68.91 a barrel. It reached a record $147.27 on July 11.
`Rebounding a Bit'
``The sight of oil prices rebounding a bit is giving the Canadian dollar a little bit of attraction,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``The U.S. dollar is also looking a little bit weaker overall, and we expect to see some volatility here over the next day or two.''
Gold increased $13.50, or 1.8 percent, to $754 an ounce. Natural gas rose 5.6 percent while copper gained 12 percent. Wheat futures for December delivery rose 60 cents, or 12 percent, to $5.74 a bushel.
The loonie, as Canada's currency is known because of the aquatic bird on the one-dollar coin, strengthened against 15 of the 16 most-actively traded currencies today.