The Canadian dollar sank today even though the Forex traders’ sentiment towards the currency improved somewhat and not all economic reports from Canada were bad. The currency extended its drop for a second trading session.
The Purchasing Managers’ Index of Richard Ivey School of Business dropped from 48.2 in May to 46.9 in June while analysts have promised an increase to 51.3. As for good news, building permits jumped 13.8 percent in May. The increase was far bigger than predicted 3.1 percent and April’s 2.2 percent.
According to the Commitment of Traders Report, leveraged funds still have far more short positions than long ones on the Canadian currency, but the number of longs was rising, while the number of shorts was falling.
The loonie jumped after the release of US non-farm payrolls but failed to maintain rally and fell by the end of the Friday’s trading session. The weakness persisted at the start of the current trading week.
USD/CAD jumped from 1.0646 to 1.0681, and EUR/CAD advanced from 1.4470 to 1.4532 as of 21:40 GMT today. CAD/JPY tumbled from 95.81 to 95.36.
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