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Friday, July 30, 2010

Loonie Rises vs. Greenback, Falls vs. Euro

Canadian DollarThe�Canadian dollar rose against its U.S. counterpart after two days of�decline as�demand for�the�crude oil, the�main Canada�s export, increased and�the�commodity prices rallied. The�loonie performed not so well against other currencies, including the�euro, against which Canada�s currency continued to�fall.

The�S&P 500 Index dropped 0.8 percent. The�decline of�the�stocks usually followed by�the�decline of�the�loonie, but this time the�effect of�the�falling equities was muted by�the�rallying commodities. Crude oil futures rose for�the�first time in�a�week, advancing by�1.4 percent to�$78.03. Copper futures went up to�$3.2765 per pound, the�highest level since May 4th. The�natural gas futures rallied for�the�fourth day.

The�Canadian currency lagged behind other currencies, failing to�profit from the�greenback�s weakness to�the�full extent. One of�the�reasons for�this is the�bad economic data from Canada. The�government report showed that the�industrial product price index dropped 0.9 percent in�June from May, the�biggest decline since May 2009.

USD/CAD fell to�1.0357 from 1.0384 as�of�20:08 GMT today after dropping as�low as�1.0298. EUR/CAD rose from 1.3492 to�1.3544.

If you want to�comment on�the�Canadian dollar�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the Canadian Dollar:

This entry was posted on Thursday, July 29th, 2010 at 10:08 pm and is filed under Canadian Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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