The Canadian dollar was rather soft today, falling against most major currencies. The euro was an exception as the loonie traded flat versus the shared 19-nation currency.
One of the possible reasons for the weakness of the Canadian currency was the tendency of Forex traders to stick to safer currencies, not riskier ones. Another reason for the drop was the decline of crude oil prices, which followed the earlier rally caused by US-Iran tensions.
This week is extremely light on economic data from Canada, with today’s wholesale sales being the only noticeable economic release. According to the data from Statistics Canada, wholesale sales rose 1.2% to a record in May, two times the forecast rate of increase. Next week should be much more interesting, with reports on gross domestic product and trade balance.
USD/CAD rose from 1.3130 to 1.3163 as of 17:40 GMT today. EUR/CAD was flat at 1.5404. CAD/JPY slid from 84.75 to 84.63.
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