Canadian Dollar Slides on Stocks, U.S. Data

The Canadian dollar posted its first day of losses this week as risk appetite that fueled its rally since Monday decreased today, forcing markets with strong influence with the loonie down, and consequently erasing the Canadian dollar’s gains versus its U.S. counterpart.

Raw materials account for more than half of Canada’s exports revenues, and as energetic commodities didn’t maintain their bullish patterns perceived in the beginning of the week, the loonie had its rally halted, as the lack of publications in Canada, made the nation’s currency to be strongly dependent of these market’s performance. The U.S. dollar managed to pare losses versus its Canadian counterpart as an important employment report published today showed improving conditions in the U.S. job market, which attracted more traders to purchase greenback-priced assets.

The Canadian dollar is starting this month following commodities and stocks charts totally, as there are no national events or expectations that could move the loonie charts otherwise. A certain amount of uncertainty is causing the loonie currency pairs to fluctuate, and this trend is likely to follow for the next weeks.

USD/CAD traded at 1.0611 as of 20:34 GMT from a previous intraday rate of 1.0567. AUD/CAD traded at 0.9371 showing virtually no change since yesterday.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *