The Canadian dollar on Friday edged higher against the shared currency of the European Union as Cyprus' political leaders prepared to meet to strategize on how to release emergency bailout aid in the face of a looming deadline, Bloomberg reports.
Retail sales climbed in Canada in January, which also benefited the loonie as the increase indicated the economy's strengthening tendencies. But the ongoing debacle with Cyprus, as the 17-nation euro zone attempts to emerge from the shadow of the sovereign debt crisis, was being closely tracked by investors, traders and analysts.
"With the (federal) budget fireworks out of the way, there is little in terms of event risk from North America today, and the focus will largely be on any potential solution for Cyprus," states a Friday note penned by chief technical analyst George Davis with RBC Capital Markets, according to The Canadian Press.
The monetary unit of Canada also benefited from the U.S. releasing labor market data that was stronger than forecast.
Finance minister Jim Flaherty said he is aiming to rid Canada of its deficit prior to 2015, according to The Canadian Press.
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