CAD Reaches Four-Month Low vs. USD

The Canadian dollar slipped to the four-month low against its US counterpart and the three-month low versus the Japanese yen. The currency gained against the euro and the Australian dollar.
Interestingly enough, traders were scared by the meeting of European chiefs in Brussels tonight. Previously, the European Union summits were a source of optimism for market participants, but it looks like now people just get tired from empty promises and do not believe that anything good would come out from the meeting. Speculators are still worried that Greek elections on June 17 may result in an exit of the country from the eurozone.
Commodities took a beating and fell on negative market sentiment. The Standard & Poor’s GSCI Index, which tracks 24 commodities, fell 1.9 percent. It is not a surprise that the Canadian dollar, being a commodity currency, fell against the greenback and the yen. It could be expected that the loonie would outperform the euro that was dropping sharply. Yet the Canadian currency even managed to reach the highest level since October against another commodity currency — the Australian dollar.
USD/CAD traded at 1.0253 as of 2:18 GMT today after it reached 1.0294 yesterday — the highest level since January 9. CAD/JPY slipped to 76.98 yesterday, the lowest price since February 8, and traded today at 77.45. EUR/CAD was down from 1.2952 to 1.2890 on the previous session and traded near that level on today’s session. AUD/CAD was at 0.9993 after it touched 0.9955 — the lowest rate since October 4.

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