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.
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.
