The Canadian Dollar is trading at 71.78 against the Argentine Peso this morning, up 0.42% with a YTD change of 8.67%. The pair’s open rate was 71.48, similar to their previous close at 71.47. CAD/ARS is expected to move between 71.26 and 71.87 throughout the day, the currency pair’s 52-week range is forecasted to fluctuate between 43.11 and 71.98.
CAD/ARS has steadily risen since the beginning of 2018 jumping from the 15.00 level to 29.00 in 2019. At the beginning of 2020, the currency pair’s exchange rate climbed to the 45.00 marks and has now passed the 70.00 level which is benefiting bears looking for consistent, long-term growth.
The loonie is a commodity currency that has recently been thriving due to crude oil prices for weeks and Canada recently also seen an increase in exports which places the country in its first surplus since 2019. The surplus, along with oil prices has positioned CAD in a very strong position in the market.
Tomorrow the BoC is expected to provide markets with Canada’s latest interest rate decision and “widely anticipated to stand pat on rate through 2022, there has been growing speculation that the central bank’s next move will be to taper its pace of asset purchases from the current level of $4-billion per week” according to Daily FX.
If the BoC does decide to scale back the country’s bond-buying program “FX traders could see another influx of strength across CAD price action.” Additionally, CAD could experience some volatility based on monthly employment data that is expected to be released by the end of the week.
By Surina Nath