Futures Market News
Loonie suffers from European election results
May 07, 2012 10:10 AM
Election results in Europe pulled down the Canadian dollar on Monday against the world's reserve currency as the loonie headed toward its lowest value in almost three weeks, according to Reuters.
Voters in Greece and France largely turned away from political leaders whose efforts circle around pro-austerity measures in the nation that has received two tranches of bailout aid and the nation hosting the euro zone's second largest economy, respectively. The burden is likely to grow larger for Germany, host of the euro zone's top economy, to employ methods and strategies more geared toward growth.
Canada's dollar "has held in reasonably well, even the euro has been still within its recent range," chief Canada macro strategist David Tulk with TD Securities told Reuters. "That probably reflects the fact that some of these results, at least from the core perspective were somewhat expected."
Two parties that endorse austerity measures in Greece were abandoned for other parties and Socialist Francoise Hollande defeated incumbent Nicolas Sarkozy in France.
Crude oil, the top export of natural-resources-rich Canada, also fell in value on Monday, which the Canadian Press reports also tugged on the loonie.
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