Speculators have turned bullish on the Canadian dollar for the first time since May last year, Commodity Futures Trading Commission (CFTC) data showed on Friday. Net long Canadian dollar positions stood at 97 contracts in the week ended April 5, swinging from net short 6,180 contracts in the prior week. At the end of January, net short exposure was the largest in five months at 66,819 contracts.
The currency has rebounded 13 percent since hitting a 12-year low at C$1.4689 in January, supported by a partial recovery in oil prices, the Canadian government's plan for fiscal stimulus and sharply reduced expectations for Bank of Canada rate cuts. The currency approached last week a key resistance level at C$1.2832, its strongest since the Bank of Canada last cut interest rates in July.