The Canadian dollar this week is aiming to prolong its longest weekly gains streak against the U.S. dollar, capitalizing on euro zone leaders' agreement last week to confront the sovereign debt crisis, according to Bloomberg.
After pushing beyond parity with the greenback, the loonie also is driving toward its biggest monthly gain against its southerly rival since July 2009. The monetary unit begins angling for a fifth consecutive week of annual gains on Monday.
"It's very much overextended," head analyst Dean Popplewell with online currency-trading firm Oanda in Toronto told Bloomberg. "If you were a betting individual you would prefer owning U.S. dollars down here. We still have too many variables on the table."
Despite climbing against the U.S. dollar, the loonie has dropped in value when compared to the majority of its rival monetary units.
Dow Jones Newswires reports trade on Friday was slow, which enabled the monetary unit to retain its advances in value that were propelled by the euro zone leaders' debt deal in Brussels early Thursday morning. The deal seeks to aid nations such as Greece, which is awaiting its second tranche of international aid since June 2010.
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