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Canadian Dollar Falls Amid Risk Aversion

Alliance News

CANBERA ( Alliance News ) - The Canadian dollar lost ground against other major currencies ahead of the European session on Friday amid risk aversion, as investors focus on US reports of personal income and spending, manufacturing activity and construction spending along with the all-important jobs report later in the day for clues whether the Federal Reserve will have to raise interest rates sooner than expected.

In news out of Ukraine , a team of international investigators have reportedly reached the crash site of the Malaysia Airlines Flight MH17 in eastern Ukraine . The international team will initially focus its efforts on retrieving bodies remaining on the site and collecting victims' belongings.

Israel and Hamas agreed to a 72-hour humanitarian cease-fire in the Gaza conflict early Friday, giving innocent civilians a much-needed reprieve from violence. Expressing serious concerns at the catastrophic humanitarian situation in Gaza , the European bloc stressed that the two rival sides in the conflict must meet their obligations and immediately allow safe and full humanitarian access for the urgent distribution of assistance.

Moody's investor service today revised its rating outlook for Argentina to 'negative', citing continued economic stagnation in the country, days after S&P lowered its unsolicited long- and short-term foreign currency sovereign credit ratings on the country to selective default.

The Canadian dollar fell to nearly a 2-month low of 1.0904 against the US dollar, from an early high of 1.0900. If the loonie extends its downtrend, it is likely to find support around the 1.094 area.

Against the yen, the loonie dropped to a 2-day low of 94.07 from an early high of 94.31. The loonie may test support near the 93.88 area.

Bank of Japan Governor Haruhiko Kuroda said in his speech today that positive turnaround in the three areas of financial conditions, expectations and economic activity brought about by the introduction of quantitative and qualitative easing has positioned the Japanese economy on track to achieve the 2% price stability target, as expected.

The loonie slipped to more than a 2-week low of 1.4651 against the euro, from an early high of 1.4596. Continuation of bearish trend may lead the loonie to a support around the 1.47 mark.

Data from Markit Economics showed that Eurozone manufacturing activity growth remained stable at June's seven-month low. The final seasonally adjusted manufacturing Purchasing Managers' Index came in at 51.8 in July, unchanged from June. The flash score for July was 51.9.

Against the Australian dollar, the loonie retreated to 1.0156, from an early high of 1.0131. If the loonie extends its downtrend, it is likely to find support around the 1.00 area.

Copyright RTT News/dpa-AFX
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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