Loonie’s Weekly Gains Were Erased in One Day

This week showed the mixed set of results for the Canadian dollar as the currency dropped against its U.S. counterpart, managed to strengthen against the euro and remained at approximately same level against the Japanese yen.
The general directions of the currency’s movement against all the loonie’s counterparts was rather similar: the tendency to rise, which was disrupted on Tuesday by the evidences that the central bank will stop raising the interest rates, then the appreciation was again halted yesterday on the renewed fears of the European crisis. The trend for the appreciation was strong against both the euro and the yen, though the concern about the sovereign-debt crisis in the Europe has seriously crippled the Canadian currency as the loonie’s gains against the yen over the whole week were erased in one day. The tendency to appreciate wasn’t so strong against the greenback, but Wednesday’s rally was rather impressive, yet Friday erased any positive moves of the currency.
This week confirmed that Canada and its currency have rather strong potential for growth. It’s just outside influence that hinders the loonie’s performance.
USD/CAD closed at 1.0606 after it opened at 1.0516 and reached its weekly low of 1.0334. EUR/CAD closed at 1.2689 after it opened at 1.2914. CAD/JPY closed at 86.43 almost at the opening level of 86.41, it reached weekly high of 89.67 on Thursday.

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