Canadian Dollar Remains Near Parity

The Canadian dollar trades near parity with its U.S. counterpart as the traders await the outcome of the 45 billion euro aid package, provided by the European Union and the International Monetary Fund to Greece.

With the clarity about the bailout the global equity markets will be spurred, boosting the commodity currencies. The Loonie, as the Canadian currency commonly nicknamed, can be considered such currency as its performance depends on the moves of the equities and the commodities, like earlier, when the currency dropped after the prices for the oil, the biggest nation’s export, declined.

The experts think that outcome of the Greece’s crisis and the reaction of the markets on it will have significant impact on the Canadian dollar performance. Though, even if the rescue will be considered successful, the optimism for the European economy may be short-lived.

USD/CAD traded near 1.0007 as of 21:37 GMT at its opening rate today. EUR/CAD traded at about 1.3406 after opening at 1.3331.

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