Canadian Dollar Remains Depressed by European Crisis

The Canadian dollar fell today, dropping for the fourth straight day against its US peer, as fears of a collapse of the eurozone made Forex traders prefer the US currency to the Canadian one. The currency was flat against the yen.
The prospect of an exit of Greece from the eurozone is still haunting investors and is likely to persist until the elections in June. China and the United States also add to uncertainty from time to time as some indicators signal about slower growth. All in all, currently is not the best environment to trade higher-yielding currencies associated with risk.
The future of the Canadian currency does not look grim despite the negative factors as the economy of Canada looks robust enough to weather most adverse events. In fact, fundamentals were rather supportive for the loonie and it is somewhat surprising that the currency has not profited from them. Futures for delivery of crude oil in July rose 1 percent to $90.80 per barrel on NYMEX. The Standard & Poor’s GSCI Index, tracking of 24 commodities, advanced 0.4 percent.
USD/CAD rose from 1.0262 to 1.0270 as of 2:16 GMT today. EUR/CAD climbed from 1.2865 to 1.2876. CAD/JPY was near the opening level of 77.52.

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