Canadian Dollar Steady Today

Canadian dollar is mostly steady today. Amidst uncertainty about Europe, and concerns about what’s next, the loonie is managing to hold its own, especially against the US dollar. Risk aversion isn’t as big a deal as might have thought after the weekend in Europe. However, there is little domestic data to change the course of the Canadian dollar, and volumes are low due to a holiday close for the markets in London.

Even though there is uncertainty about what is next for the eurozone with the loss of Nicolas Sarkozy to Francois Hollande in France, and the loss of Parliament seats for pro-austerity parties in Greece, Forex traders don’t seem quite ready to abandon risk appetite altogether. And, even though commodities are lower, with oil prices below $97 a barrel, the loonie is still finding some support against the US dollar.
For the most part, the Canadian dollar’s support has come from one of the few bits of data reported: Building permits were unexpectedly higher in March according to Statistics Canada. The improvement indicates that spending for economic stimulus is underway, since many of the building permits are for government and office buildings.
At 14:39 GMT USD/CAD is at 0.9945, down from the open at 0.9989. GBP/CAD is a litte bit higher, coming in at 1.6083, up from the open at 1.6068.

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