Crude oil, the blue chip commodity of the natural-resource rich nation, lost value as the newness of Italy and Greece's prime ministers wore off and the glum reality of the sovereign debt scourge's damage set in. Concerns and doubts are spreading about the nations' abilities to pay off their debt.
"The Europeans would like the world to believe that they are making headway in finding a resolution to the debt crisis," vice president Michael O'Neill with FX Trading at RJOFX Canada told Dow Jones Newswires. "So far, investors aren't convinced."
At 1:35 p.m. on Monday, crude oil futures fell 1.89 percent, a $2.16 slip to $112 per barrel.
The economy of Canada is reliant on its natural resources and the loonie is sensitive to those commodities' performance on the markets. The loonie also reacts strongly to developments with the euro zone's endurance of the sovereign debt crisis.
Italy's new prime minister was working on putting together a new government that will more strongly confront the debt scourge.
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