Canadian Dollar buoyed by market flows on Wednesday

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The Canadian Dollar (CAD) was bolstered into the high end on Wednesday as risk sentiment improved across the FX market.

The Canadian Dollar rose against key counterparts in the middle of the week. CAD climb comes despite pullback in Canadian Ivey PMIs. Canadian labor figures loom over the horizon on Friday. The Canadian Dollar was bolstered into the high end on Wednesday as risk sentiment improved across the FX market. The CAD climbed against the Japanese Yen and the Swiss Franc as the two currencies battle for last place during the midweek market session.

Other factors include market sentiment – whether investors are taking on more risky assets or seeking safe-havens – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another.

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