The Canadian dollar rose against the euro and erased losses against the US dollar yesterday and remained firm today. At the same time, the currency was soft versus the Japanese yen, paring yesterday’s rally.
Fundamentals were mixed for the loonie. On one hand, building permits grew 8.6 percent in March from February, beating the forecast of 0.7 percent by a great margin. On the other, the Ivey Purchasing Managers’ Index slipped from 61.6 in March to 52.2 in April, far below the expected 58.3.
The general market sentiment favored the Canadian currency, being mildly positive. Commodities, including crude oil, advanced giving support the Canadian dollar. Still, analysts are worried that the tide may easily turn against the currency.
USD/CAD was flat at 1.0066 and EUR/CAD traded near the opening level of 1.3163 as of 2:14 GMT today after dropping from 1.3209 to 1.3163 yesterday. Meanwhile, CAD/JPY slid from 98.61 to 98.28.
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