Canadian Dollar Advances with Oil on Aid for Cyprus, Loses Gains
The Canadian dollar advanced today as crude oil gained amid the positive market sentiment caused by the bailout deal for Cyprus. The currency trimmed its gains and fell against the yen as optimism was slowly going away from the Forex market.
Futures for crude oil went up 0.7 percent to $94.40 per barrel after reaching $95.65, the highest level since February 20. Other markets also felt optimism, boosting risk-related currencies. The stock market followed the suit initially, but submitted to the downside pressure later as the Standard & Poor’s 500 Index of shares dropped 0.6 percent, erasing the 0.5 percent advance.
The Canadian currency also rose initially, but lost most of its gains against the greenback and dropped versus the yen. At the same time, the loonie was gaining on the euro almost for the whole day even amid the initial optimism.
USD/CAD went down from 1.0231 to 1.0211 as of 19:53 GMT today, while the daily low was at 1.0186. CAD/JPY fell from 92.20 to 92.10 after rising from 93.11. Meanwhile, EUR/CAD dropped from 1.3247 to 1.3129.
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