adidas cap Loonie slides on political impasse in Greece
counterpart on Tuesday but surged to a 16 month high against the euro after Greece said it would hold new elections and worries mounted about its possible exit from the euro zone.
Attempts to form a government in Greece collapsed on Tuesday, jolting financial markets at the prospect leftists opposed to the terms of an EU bailout could sweep to victory in a June vote.
“A lot of traders are looking to trade the CAD versus the crosses like the pound, the yen and the euro versus dollar/CAD by itself,” said Gareth Sylvester, senior currency strategist at risk management firm Klarity FX in San Francisco. cents, keeping Canada’s dollar within the confined range that it’s been stuck in since early this year. dollar versus Canada around C$1.0050 and buy it towards C$0.9850. cents.
“It’s the great sideways trade of 2012 that continues unabated,” said Jack Spitz, managing director of foreign exchange at National Bank Financial.
Earlier in the session, the Canadian dollar was on firmer ground on the back of surprisingly strong growth data from Germany.
Investors will look to Canadian inflation data for April at the end of the week for more significant direction, watching for any clues on the Bank of Canada’s next tightening move.
“If core inflation is above 2 percent it adds to the suggestion that the Bank of Canada is going to be one of the leading central banks in terms of pulling back excessive accommodation, so it could inspire some more Canadian dollar bids,” added Spitz.
According to a Reuters poll however, Canadian consumer prices likely remained subdued in April, leaving the annual inflation rate unchanged from March when it dropped to an 18 month low of 1.9 percent, and suggesting price pressures are the least of the Bank of Canada’s worries.
The two year government bond was down 4 Canadian cents to yield 1.292 percent, while Canada’s 10 year bond lost 10 Canadian cents to yield 1.946 percent.