Forex News

The Canadian dollar pared all of its yesterday’s losses versus the U.S. and headed for another weekly increase versus the greenback and most of the main traded currencies as demand for the countries raw materials increased globally.

After touching the highest rate in February on renewed risk appetite, the Canadian dollar retreated versus its U.S. counterpart after the Federal Reserve raised its discount rate for the first time in three years, allowing the greenback to be more attractive than the loonie in forex markets.

After reaching almost its record high versus the U.S. dollar this month as risk appetite rose globally, the Canadian dollar slid as U.S. economic data published today attracted traders to inject capital in the world’s wealthiest nation, decreasing appeal for assets in its Northern neighbor.

The Canadian currency benefited from a risk driven session today after commodities and stocks climbed considerably on renewed market confidence since concerns regarding Greece’s budget deficit cooled down in Europe, decreasing risk aversion globally.

The Canadian dollar continued to gain today versus its U.S. counterpart as risk appetite rose considerably in North America after U.S. jobless claims declined beyond expectations raising demand in markets that influence the loonie, as stocks and commodities.

The Canadian dollar profited today from different factors that allowed optimism to penetrate equities and commodities markets, extremely influential on the loonie rates, that touched the highest level in one-week versus its U.S. counterpart.

The Canadian currency climbed from the lowest rate in 2010 versus its U.S. counterpart as a positive real state report combined with a slight recovery in the crude oil rates gave strength for the loonie to trade below $1.07 in this start of this week’s session.

The Canadian dollar touched a new record low for 2010 versus its U.S. counterpart as a massive wave of risk aversion irradiating from Europe caused commodities and equities markets to decline worldwide.

The Canadian dollar posted its first day of losses this week as risk appetite that fueled its rally since Monday decreased today, forcing markets with strong influence with the loonie down, and consequently erasing the Canadian dollar’s gains versus its U.S. counterpart.

The Canadian dollar continued to erase last week’s losses versus lower yielding currencies as commodities and stocks rebounded in North America, boosting appeal for Canadian assets as the country’s economy is extremely orientated to raw material exports.