The Canadian dollar continues to benefit from the favourable global macro environment. With commodity prices performing well and its largest trading partner showing a return to decent, if not spectacular, growth, there’s a positive story to attract spread trading investors.
Luckily for the Canadian economy, the hot money which might ordinarily flow into the currency has sought instead the high yields offered by its NAFTA partners the Brazilian real and Mexican peso. These remain the two best-performing currencies in the world in 2012.
This means that destabilising capital inflows have not threatened to derail the Canadian recovery, though job creation remains relatively subdued.
Having spent almost the entire month of February below USD 1.00, the CAD should stay a solid, if somewhat dull, performer.
Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.
You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.
Weekly forex review by MoneyCorp.
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