Canadian Dollar Pulls Away From Recent Gains Versus Majors, Tuesday, June 05, 2007 1:24:59 PM

The Canadian dollar pulled back from recent gains made against its major counterparts Tuesday in New York. The loonie fell further away from a recent 30-year high reached versus the dollar Monday morning. The Canadian currency also could not hang on to recent multi-month highs attained versus the euro and pound. Meanwhile, the Canadian dollar also slipped away from a recent multi-year high set versus the yen. There was no major economic news out of Canada on Tuesday.

On Tuesday afternoon in New York, the Canadian dollar slid further away from recent 30-year highs set against the greenback. The loonie surged ahead around 7 am ET, but was unable to hold on to those gains. At 8 am, the buck responded to comments from Federal Reserve Chairman Ben Bernanke, who once again pointed to higher inflation as a major risk to the economy. The Canadian currency fell from that point on, fetching a mark of 1.0611 just before 1 pm. That was compared to a level of 1.0563 at 8:10 am. Greenback traders also considered the announcement of higher-than-expected American non-manufacturing ISM data.

Against the euro, the Canadian dollar fell to its lowest mark since Friday morning on Tuesday in New York. After choppy trading dominated the early morning, the Canadian dollar began to decline just before 5 am ET. The decline was steady, lasing into the early afternoon. At 1:05 pm, the loonie fetched a mark of 1.4354 versus its European counterpart. This was compared to a level of 1.4267 just before 3 am. Traders considered data released Tuesday showing that Euro zone retail sales grew at a weaker-than-expected rate in April. Investors also look forward to Wednesday`s rate decision from the European Central Bank.

The loonie steadily declined against the sterling through much of the morning and early afternoon Tuesday in New York. After choppy early morning trading, the Canadian currency began to decline just before 5 am ET. At 1:10 pm, the loonie traded at a mark of 2.1159, its lowest mark since early Friday morning. This level is compared to an intraday high of 2.1053 just before 3 am. Sterling traders considered reports showing that UK PMI was stronger-than-expected in May and that May retail sales grew at their lowest rate in six months. Investors also looked ahead to the release of the British consumer confidence survey.

Versus the yen, the Canadian dollar slid through the morning and into the early afternoon Tuesday in New York. After gaining slightly during the early morning, the Canadian currency began its fall at 5 am ET. At 1:15 pm, the loonie fetched a mark of 114.28, the lowest it has been versus its Japanese counterpart since Friday morning. This was compared to a level of 115.32 just before 3 am. Traders mulled data showing that Japanese firms` capital spending reached a record high following a higher-than-expected first quarter.

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