Canadian Dollar Deepens Losing Streak

It has not been a favorable day for the Canadian dollar as stocks went down globally, the crude oil, one of the nation’s main export tumbled, and more risk averse traders opted for the safety of Canada’s counterpart currency in the United States. The Canadian dollar is facing one of the sharpest losing streaks in months during the past two days as appeal for the commodity and stocks linked currency was affected in a rather pessimism day in currency markets. Canada is one of the main oil suppliers for the U.S. and after touching $80 a barrel this week, the commodity tumbled impacting immediately the loonie’s outlook, that accentuated its negative performance as a manufacturing reported indicated improved conditions in the U.S., decreasing even further attractiveness for the Canadian dollar, which has been one of the biggest losers in today’s session.
A predominantly risk averse session is most often not favorable for the Canadian currency, according to analysts. Not only the oil tumble, but risk is off in markets today, making traders to escape from high-yielding investments in order to protect their portfolios betting on papers in the U.S. and Japan, the best bets in times of uncertainty.
USD/CAD traded at 1.0678 as of 15:33 GMT from a previous rate of 1.0527 yesterday. CAD/JPY fell to 83.10 from 84.83.