The Canadian dollar dipped today because of the risk-negative sentiment prevalent on the Forex market as well as due to the drop of crude oil prices. The loonie, as most other currencies, attempted to rally against the Japanese yen at the beginning of the current trading session but failed and trades below the opening level as of now.
Concerns about Greece and its potential exit from the eurozone continue to make traders nervous and less willing to risk. The recent string on negative economic news from China reinforced aversion to risk among market participants.
Futures for West Texas Intermediate crude oil dropped more than 3 percent in New York today. Performance of the Canadian dollar strongly correlates with moves of oil prices, meaning that the drop of futures for crude usually results in a weaker currency.
All in all, fundamentals looked bleak for the loonie during the current trading session, making the poor performance unsurprising.
USD/CAD advanced from 1.2465 to 1.2605 as of 19:38 GMT today. EUR/CAD rallied from 1.4116 to 1.4259. CAD/JPY dipped from 95.08 to 94.62 after rising to 95.77.
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