Thursday saw the Canadian dollar lose value for a second-straight day against the world's reserve currency as European Union leaders got to work in Brussels on the first day of the two-day summit to address the sovereign debt crisis, according to Bloomberg.
Similar to additional currencies connected to national economies based on natural resources, the loonie fell as preoccupations snowballed for the sovereign debt crisis' damaging tendencies. The monetary unit is likely to continue its downward trend as raw material production slows, which will persuade the central bank against hiking interest rates.
"You just have to trade the summit headline by headline," foreign-exchange strategy global head Adam Cole with RBC Capital Markets told Bloomberg. "If you had to take a directional view and stick to it, expectations going into the summit are so low, there has to be some risk of a pleasant surprise, which would be risk positive."
The loonie's losses thus far this month against the greenback amount to 0.8 percent, Bloomberg reports. This month's dive is the biggest since the monetary unit fell 1.3 percent in August 2011.
Reuters reports euro zone leaders were toiling on short-term techniques to stabilize two euro zone nations of concern, Spain and Italy.
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