Canadian Dollar Falls vs. US Currency, Rises vs. Euro

The Canadian dollar dropped from parity with the US dollar after commodities, including crude oil, and the stocks fell, decreasing the appeal of the growth related currencies. The loonie gained versus the euro.

The equities and the commodities fell after the US auctioned Treasuries. The yield on 10-year Treasuries increased 12 basis points to 2.67 percent. The Standard & Poor’s 500 Index slipped 0.8 percent after it rose earlier 0.3 percent. December delivery for crude oil fell 0.7 percent to $86.47 per barrel after reaching $87.63, the highest level since October 2008.

The Canadian dollar rose previously as the report showed that the New Housing Price Index increased 0.2 percent in September following a 0.1% increase in August. The currency also gained on the outlook for the quantitative easing by the Federal Reserve to boost the economic growth.

USD/CAD traded at 1.0054 as of 04:57 GMT after rising on the previous session from 1.0034 to 1.0077. EUR/CAD fell from 1.3880 to 1.3836.

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