After reaching almost its record high versus the U.S. dollar this month as risk appetite rose globally, the Canadian dollar slid as U.S. economic data published today attracted traders to inject capital in the world’s wealthiest nation, decreasing appeal for assets in its Northern neighbor.
The loonie, as the Canadian dollar is popularly known due to the bird’s image in one of the currency’s coin, retreated from the almost highest level this month versus the greenback as different economic reports in the U.S. increased confidence that the economic recovery in the country is more resilient than Canada’s present situation, causing an exodus of investors towards the richest state in the world. The Canadian dollar was also affected slightly by a return of pessimism in Europe, as EU officials reaffirmed that Greece will not receive direct funding to end its fiscal crisis, decreasing appeal for currencies tied to stocks and commodities markets, as its the case of the Canadian dollar.
The Canadian dollar is still experiencing weeks of extremely volatile sessions, as the global economy is still not solid and far from a complete recovery from last year’s recession, which allows day traders to profit from this scenario, but makes it harder for long term investors to know which direction the loonie will follow.
USD/CAD traded at 1.0450 as of 20:21 GMT from a previous intraday rate of 1.0430.
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