The Canadian dollar dropped for the third consecutive session against its US peer, closing below parity. It also fell against the Japanese yen. Yet the loonie managed to advance versus the euro.
Fundamental data from Europe was bad enough to put markets in the risk-off mode, but positive reports from the United States alleviated the negative sentiment. Crude oil, the main Canada’s export, dropped as much as 1.1 percent to $84.13 per barrel in New York, but rebounded 1.2 percent to $86.10. The Standard & Poorâs 500 Index fell 0.3 percent before advancing 0.2 percent.
The US data was positive enough to allow the loonie to trim its losses versus the yen and to gain against the euro. The University of Michigan’s preliminary consumer sentiment index unexpectedly rose from 82.6 to 84.9 this month. Import prices grew 0.5 percent, while no change was expected by analysts.
USD/CAD rose from 1.0001 to close at 1.0011 and its daily maximum of 1.0031 was the highest rate since August 3. CAD/JPY was down from 79.42 to 79.34, but rebounded from the low of 78.85, which was the lowest since September 27. EUR/CAD declined from 1.2746 to 1.2724.
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