Criticism of economy-spurring measures by officials in Japan and China dragged down the value of the Canadian dollar against its top rivals on Wednesday, according to Bloomberg.
The loonie sank the most in seven days against the U.S. dollar after the economy minister of Japan and a Russian central bank official publicly noted questions about watering down the value of monetary units as a strategy of spurring economic development and growth.
"The Canadian dollar is weaker on general market sentiment, which is shedding risk," senior vice president John Curran with CanadianForex told Reuters on Wednesday. "People are comfortable with their levels against the U.S. dollar for those currencies. There's still a bit of a premium attached to all of them."
Also pulling down the value of the Canadian dollar during the Wednesday trade session was slippage to crude oil, which is the top commodity of the nation whose economy is underpinned by the export of its natural resources.
Concerns are growing about the strength of the global economic recovery from the Great Recession, which also is impacting the loonie's performance on Wednesday, Reuters reports.
Risk Disclosure
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.
