Monday saw the monetary unit of Canada push to its highest value ever against the common currency of the European Union, driven by the belief that euro zone policy makers have not done enough to rein in the damaging tendencies caused by the euro debt crisis, according to Bloomberg.
The Canadian dollar also climbed against most of its counterpart currencies though it dropped against the world's reserve currency for the first time in four days. Ben Bernanke, chair of the central bank of the U.S., was scheduled to testify before congress on Tuesday and Wednesday.
"The bigger-picture trend is really euro lower, and I think that's something that will likely play out throughout the week," currency strategist Greg Moore with Toronto-Dominion Bank in Toronto told Bloomberg on Monday.
The loonie pushed to its record high against the 17-nation monetary unit, touching its highest value since the euro first made its entry on forex markets in 1999.
Despite the strong performance against the euro, the loonie touched its session low against the U.S. dollar on Monday after economic data showed U.S. retail sales sank for a third straight month, according to Reuters.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.