Tuesday, June 10, 2014

The Canadian dollar

The Canadian dollar is little changed Tuesday as an absence of any economic data or other domestic drivers leaves it at the mercy of fluctuating trading flows in the market.
The U.S. dollar is at C$1.0908 Tuesday, from C$1.0905 late Monday, according to data provider CQG. A report from BMO Capital Markets in London said the U.S. was weaker against its Canadian counterpart and nearly touched support at C$1.0900 early during the London morning.
"But a material chunk of that weakness in the pair appeared to be in part driven by EUR/CAD downside, particularly with U.S. yields rather well supported," BMO said. "In other words, the extent of isolated USD weakness behind the move in USD/CAD appears to have been rather limited."
There was more activity in the euro/Canadian dollar cross, with the common currency down by about 0.4% against the loonie since late Monday.
BMO said that with very little on the North American data calendars, Canadian dollar players will stay focused on the euro's fluctuations against the Canadian unit. Softness in that pair does look like it is going to make it a struggle for the U.S. dollar to obtain C$1.0950 in the immediate future