The Canadian dollar was struggling to hold onto earlier gains today but had troubles to fight against adverse fundamentals that were trying to drag the currency down. Intraday, the loonie touched new multi-year lows versus the US dollar and the Japanese yen.
While the Canadian currency was rising during the current trading session, it has lost its gains versus the greenback and returned back to the opening level against the yen as of now. Crude oil, one of the major drivers for the currency, lost more than 2 percent of its value during today’s trading. Canada’s housing starts were at 172,965 units in December, down from 212,028 units in November.
Today’s rally was the first after the five straight sessions of losses versus the US and the Japanese currencies. The loonie fell on Friday even though Canada’s employment data was favorable, was rising during an increase by 22,800 — more than two times the forecast gain.
USD/CAD rose from 1.4167 to 1.4189 as of 16:21 GMT today after falling to 1.4064 earlier. EUR/CAD ticked down from 1.5466 to 1.5449, bouncing from the daily low of 1.5296. CAD/JPY traded at about the opening rate of 82.70 following the rally to 83.87 intraday.
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