Monday, June 4, 2007

Canadian Dollar Loses Early Momentum Versus Majors, Monday, June 04, 2007 9:44:16 AM

The Canadian dollar experienced mixed results versus its major counterparts Monday morning in New York. The loonie had a great deal of momentum during the early morning, but stalled and retreated throughout the rest of the morning. The Canadian currency hit a new 30-year high versus the dollar before pulling back a bit. The loonie also reached a multi-year high versus the yen and multi-month highs against both the euro and sterling before giving up its gains later in the morning.

The Canadian dollar edged higher versus the greenback Monday morning in New York. The loonie advanced in the early morning, reaching another 30-year high of 1.0549 just before 6 am ET. After setting that mark, the Canadian currency pulled away to fetch a level of 1.0581 at 9:10 am. Greenback traders looked ahead to the 10 am announcement of American factory orders.

Against the euro, the loonie edged slightly lower Monday morning in New York. The Canadian dollar advanced in the early morning to its highest level since late October. However, the Canadian currency began to pull back around 6:30 am ET, more than offsetting its earlier gains. At 9:20 am, the loonie traded at a mark of 1.4279 versus its European counterpart. This is compared to a level of 1.4201 at 3:30 am. Traders mulled data showing that Euro Zone PPI rose above expectations during April.

The loonie slid versus the sterling Monday morning in New York. The Canadian dollar reached a multi-month high during the early morning, but began to offset those gains during the mid-morning. At 9:25 am ET, the loonie fetched 2.1054, off an intraday high of 2.0947 just before 5 am. Traders of the British currency looked ahead to the release of the retail sales monitor and Thursday`s Bank of England rate decision.

Versus the yen, the Canadian dollar was largely uncertain during Monday morning action in New York. After advancing to another multi-year high versus the yen just before 6 am ET, the loonie sunk near its levels from late Sunday night. At 9:30 am ET, the Canadian dollar traded at a mark of 114.96 versus its Japanese counterpart. This is compared to a level of 115.61 at 5:40 am ET. Traders considered data showing that Japanese capital spending grew more than expected in the first quarter.
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