Market Sentiment Shifts, CAD Goes Upward

The Canadian dollar gained versus its US counterpart and the Japanese yen, while fell against the euro, as Forex traders view the talks about new portion of a bailout to Greece in the positive light again.

Traders constantly change their opinion regarding what happening in Europe. Currently their mood is positive because of speculations that Greece and the so-called “troika” (the European Union, the European Central Bank and the International Monetary Fund) are devising final drafts of the rescue program for Greece. Additionally, German Chancellor Angela Merkel reiterated her pledge to keep Greece in the eurozone. Such statement shows that leaders of the EU are serious about supporting the most troubled member of the Union.

Other fundamentals were also positive for the loonie. Crude oil rose 1.7 percent to $98.73 a barrel in New York. The Ivey PMI rose advanced from 63.5 in December to 64.1 in January. Building approval grew 11.1 percent in December from November, not a bad result and it looks even better, considering that analysts promised just a 0.2 rise.

USD/CAD fell from 0.9959 to closed at 0.9946 yesterday and traded at 0.9954 as of 00:13 GMT today. At the same time, EUR/CAD climbed from 1.3076 to 1.3187 and stayed near that level today. CAD/JPY was higher from 76.81 to 77.13, but retreated after today’s opening and traded at about 77.08.

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