Futures Market News
Canadian dollar benefits from economic developments
Jul 25, 2012 12:14 PM
The loonie also benefited from remarks of a policy maker with the European Central Bank stating the European Stability Mechanism is due a license for banking purposes, which benefited the common currency of the European Union as well. As Spanish fiscal problems worsen, the ESM then would be equipped to borrow money from the ECB as the nation is increasingly likely to solicit a full bailout.
"There's more positive sentiment," states an email to Bloomberg penned by managing director Steve Butler with Scotiabank in Toronto. "It's giving the market hope that there will be some policy action, either in the U.S. or Europe or both."
Also benefiting the loonie on Wednesday were increasing prices of crude oil, which is the top export of the natural-resources-rich nation. The loonie was near its lowest price in 14 days against the world's reserve currency.
Council member Ewald Nowotny with the ECB said many strong, well-reasoned arguments support the licensure of the ESM as the sovereign debt crisis continues victimizing euro bloc nations' banks, markets and public finance systems.
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