BLBG: Canada Dollar Strengthens to 3-Week High Versus Euro on Deadlock on Greece
Canada’s dollar gained to the strongest level in almost three weeks versus the euro after European officials failed to break a deadlock on a second bailout for Greece.
The currency, nicknamed the loonie for the image of the bird on the C$1 coin, rose against the majority of its most- traded counterparts before data that may show industrial production increased in the U.S., Canada’s biggest trading partner. The loonie fluctuated against the greenback before another report forecast to show Canadian factory sales fell. The U.S. dollar gained versus the euro and yen.
“There’s an ebb and flow to the European dialogue, and none of it’s good,” said Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto. “Canada is outperforming on the back of a strong U.S. dollar today as a North American currency.”
Canada’s currency gained 0.8 percent versus the euro to C$1.3866 at 8:17 a.m. in Toronto, from C$1.3981 yesterday. It touched C$1.3845, the strongest level since May 27.
The loonie traded at 97.03 cents per U.S. dollar, down 0.2 percent from 96.82 cents yesterday, after touching 96.71 cents, the strongest level since June 1. One Canadian dollar buys $1.0306.
Euro-area finance ministers agreed yesterday to reconvene on June 19 after they failed to reached agreement over a German- led push for private bondholders to share part of the cost of a new Greek aid plan. The European Central Bank, backed by France, said such a move might constitute the region’s first sovereign default.
U.S. industrial production increased 0.2 percent in May, after stalling in April, while a rise in consumer prices slowed to 0.1 percent, according to Bloomberg News surveys of economists before today’s report. Canada’s factory sales decreased 1.4 percent in April after gaining 1.9 percent the previous month, a separate Bloomberg survey forecast.
To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
