The Canadian dollar dropped today against other most-traded currencies even though fundamentals were supportive for the loonie. Earlier, the Canadian currency advanced against the US dollar and the euro, but erased its gains later.
One of the reasons for the drop of CAD could be concerns that central banks across the world will stop introducing stimulating measures. USD dropped despite speculations about an end to quantitative easing, but still managed to outperform CAD.
Futures for crude oil advanced 0.5 percent to $95.86 per barrel in New York today. Crude is the major Canadian export and an important factor for performance of CAD. The yield between US and Canadian government bonds narrowed. Yet the Canadian currency remained soft despite the favorable fundamentals.
USD/CAD rose from 1.0186 to 1.0207 as of 21:21 GMT today after falling to 1.0154. EUR/CAD advanced from 1.3562 to 1.3613 following the drop to 1.3481. CAD/JPY declined from 94.19 to 93.99.
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