The Canadian dollar extended its yesterday’s decline today as the returning concerns about the debt problems in the European Union made traders shun riskier currencies.
As it was in the past instances, optimistic sentiment about Europe, caused by good news, quickly turned to pessimism and risk aversion. It’s hard to expect the situation to improve overnight, but it often looks like there are no changes at all, even small one. Therefore, investors are continuously plagued by the question: do the European leaders have any actual ideas how to deal with the crisis or they simply helplessly watch as the events unfold?
Europe has a great impact on the world economy and, as a result, uncertainty and doubts about it future hurt markets across the world. Crude oil declined 0.9 percent to $98.11 per barrel. The Standard & Poorâs 500 Index fell 1 percent. The S&P/TSX Composite Index went down 0.4 percent.
USD/CAD rose today from 1.0165 to 1.0191 as of 7:06 GMT today. CAD/JPY was down from 75.76 to 75.49 after climbing to 76.16.
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