The Canadian dollar fell today as concerns about the
Worries about Europe’s debt crisis intensified after Germany’s Finance Minister talked about restructuring of the Greek debt. Blake Jespersen, a director of foreign exchange at Bank of Montreal, explained:
Risk is just coming off, mostly due to Europe. All of a sudden the market is paying attention to the fact that Greece and Portugal and some of the other peripherals are still in a lot of trouble.
The Canadian economy also showed signs of weakness as the manufacturing sales posted the decline by 1.5 percent in February, instead of the expected increase by 0.6 percent.
The Canadian currency recovered against the greenback after the US jobless claims unexpectedly rose last week. The US dollar also weakened in light of the nearing $14.29 trillion debt limit in May and as the deficit debate intensifies in Washington.
EUR/CAD rose from 1.3894 to 1.3927 and CAD/JPY traded at 86.72, following the slump from 87.07 to 85.85 today as of 18:25 GMT. USD/CAD retreated to 0.9615 after the jump from 0.9622 to 0.9668.
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