The Canadian dollar fluctuated as the mixed news from Europe made traders uncertain and confused. The summer trading is nearing to its end and the Forex market should soon become more vibrant, but for now trading remains sluggish as there is no major news to move currencies.
Europe remains the major topic in the news headlines, but it was quite as of late. On the positive side, Greece claimed that it is able to fulfill the promises it made to secure the aid. On the negative side, the Bundesbank criticized the bond buying plan of the European Central Bank, demonstrating that Germany still remains a major obstacle in finding an agreement among the European countries.
As for Canada itself, the country’s fundamentals are much better than in many developed nations, though are not perfect by themselves. Prices for crude oil remain relatively high, supporting the appeal of the loonie. The spread between yields on the two-year US Treasury and the Canadian government securities has widened to 91 basis points from 63 basis points in June.
USD/CAD was down from 0.9885 to 0.9877 as of 1:50 GMT today. EUR/CAD was was flat at 1.2202 and CAD/JPY was little changed from 80.37 to 80.32.
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