Concern for Ireland’s Debt Pushes USD/CAD Higher, EUR/CAD Lower

The Canadian dollar fell versus its US counterpart and advanced against the euro as the optimism for Ireland’s rescue package wasn’t been able to sustain the good outlook for Europe’s economy.
The optimism for Ireland’s bailout supported the markets last week, but it was short-lived without actual signs of the improvement. For now situation looks even worse as the Moody’s Investors Service said that it may downgrade Ireland’s credit rating more than was earlier expected.
The bad news from Europe supported the greenback versus the loonie, yet haven’t influenced markets in any noticeable way as commodities and equities haven’t fallen much, supporting the positive outlook for the Canadian currency. The MSCI World Index of stocks rose 0.6 percent before reversing its trend and crude oil little changed at $81.56 per barrel after it climbed as much as 1.7 percent. The reports tomorrow predicted to show the growth of the consumer prices and the retail sales in Canada, helping to support the confidence in Canada’s economy and the nation’s currency.
USD/CAD advanced from 1.0160 to 1.0201 as of 18:11 GMT today after it dropped as low as 1.0120. EUR/CAD fell from 1.3954 to 1.3863, following the decline to 1.3837.

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