Renewed Optimism for Europe’s Bailout Fund Boosts Loonie

Europe and its problems continue to rule the Forex market. Yet again traders looked with hope at the upcoming European Union summit as the speculation persists about the expansion of the EU rescue fund.
The European leaders will meet at the summit in Brussels this weekend to discuss the current problems of the region and the possible measures to rescue the nations suffering from indebtedness, most notably Greece. It looks like Germany and France agreed on some sort of package to present at the summit. Market participants suspect the plan involves increasing of the EU aid facility. Still, there are 15 other members of the Union and any one of them may decline the potential proposal, ruining any plans Germany and France have.
The Canadian wholesale sales increased 0.2 percent in August to $48.4 billion after the 0.9 percent rise in July. The report wasn’t that good, though, as the increase was attributed to the higher import prices that were boosted by the decline of the nation’s currency. The main export commodity of Canada, crude oil, rebounded on the renewed optimism about Europe.
USD/CAD fell from 1.0201 to 1.0158 as of 22:09 GMT today. EUR/CAD dropped from 1.4035 to 1.3997, while the daily minimum was 1.3932. CAD/JPY went higher from 75.23 to 75.58.

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