CAD Reaches Monthly Record vs. USD Before Retreating
The Canadian dollar touched the highest level in a month against its US peer before retreating below the opening level yesterday. The currency fell against the Japanese yen as well because domestic fundamentals were not supportive for the currency.
Positive data from the United States led some traders to believe that the Bank of Canada will raise interest rates. The USA is the biggest trading partner of Canada, therefore the good health of the US economy is positive for the economy of Canada itself.
Domestic data was not as positive, reducing the strength of the loonie. Manufacturing sales fell 2.4 percent in April, the fourth decline in five months. Economists have hoped for an increase by 0.3 percent.
USD/CAD fell from 1.0155 to 1.0135, the lowest rate since May 14 before bouncing and closing at 1.0168. EUR/CAD closed at 1.3571 after dropping from 1.3581 to 1.3508. CAD/JPY slid from 93.80 to 92.74.
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Earlier News About the Canadian Dollar:
- Positive US Indicators Bring CAD Higher (2013-06-13)
- Positive Fundamentals Do Not Support Loonie (2013-06-12)
- CAD Rebounds vs. USD, Stays Soft vs. EUR & JPY (2013-06-12)
- Canadian Housing Starts Beat Expectations, Loonie Rallies (2013-06-10)
- Canadian Dollar Jumps on Biggest Employment Growth in Decade (2013-06-07)