Canadian Dollar Falls After Carney Appointed as Head of BoE

The Canadian dollar weakened yesterday as Bank of Canada Governor Mark Carney was appointed as a new head of the Bank of England, creating uncertainty about leadership in the Canadian central bank. The currency was firmer today against the US dollar and the euro, but continued to fall versus the Japanese yen.

The BoE announced yesterday that Carney will be the new Governor of the central bank. It is yet unclear who will lead the BoC after the present chief would leave in July. And any uncertainty is usually not good for riskier currencies, like Canada’s one.

The general trading environment was not supportive for the loonie either. The eurozone leaders are still unable to resolve the crisis or at least decide whether to give Greece aid or no. The United States are still threatened by the fiscal cliff.

USD/CAD fell from 0.9932 to 0.9925 as of 3:01 GMT today after rising from 0.9921 to 0.9932 yesterday. EUR/CAD advanced from 1.2868 to 1.2884 yesterday and remained near that level today. CAD/JPY was a little lower from 82.60 to 82.56 at the current trading session.

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