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Wall Street Journal - Canadian Dollar Extends Losses, Hits Lowest Level Since July 2009
Tuesday, 28 January 2014
From the Wall Street Journal
TORONTO--The Canadian dollar has resumed its decline Tuesday, hitting its lowest point since the summer of 2009, as worries about the health of emerging-market economies put selling pressure on the beleaguered currency.
The U.S. dollar was recently at C$1.1165 Tuesday morning, weaker thank the C$1.1114 late Monday, according to data provider CQG. Its session-high C$1.1178 marks its peak since July 17, 2009.
A report from CanadianForex said the U.S.-Canadian dollar pair is following general market sentiment, despite being overbought on a technical basis.
Markets remain volatile, with emerging-market concerns high on traders' radar "and emotion is pairing up nicely with fundamentals to continue the assault on the Canadian dollar," CanadianForex said.
The U.S. dollar had its gains against the loonie trimmed briefly by news that durable goods orders in the U.S. dipped by an unexpected 4.3% in December, but it quickly rebounded.
There are no significant data in Canada, leaving the currency particularly vulnerable to broader market trends.
The Canadian dollar is considered a risk-sensitive currency and can often be driven by broader investment on risk.
CanadianForex said the next technically significant level after the breach of last week's high at C$1.1174 Tuesday morning is C$1.1235, which signifies a 50% retracement from the U.S. dollar's 2009 high of C$1.3063 to its 2011 low of C$0.9407.
