The Canadian currency is going to end this week with the worst performance since the year started, as commodities and stocks declined during most of the week and today a retail sales report showed negative monthly figures, shunning investors from
The loonie had a very severe losing streak since Jan 14th when it was rallying towards parity with its U.S. counterpart, since then, virtually all fundamental and technical agents influencing the Canadian currency forced it to decline specially versus the greenback. A Bank of Canada pledge against the currency’s strength combined with a growing global risk aversion sentiment that forced equities and commodities down formed a perfect bearish scenario for the Canadian dollar which was also affected today by a report that showed a drop in retail sales in Canada, making the loonie to touch the lowest level in 3 weeks.
The Canadian dollar which started the year ranking among the best bets for 2010 suffered a huge impact as market sentiment changed since China’s announced new lending restrictions in the country, and the loonie may decline further if risk aversion continues to reign in trading markets.
USD/CAD traded at 1.0566 as of 15:45 GMT from a previous intraday rate of 1.0486. CAD/JPY traded at 85.20 from 87.48.
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