RTTN:Canadian Dollar Climbs To Near 4-week High Against Greenback And Yen
(RTTNews) - The Canadian dollar strengthened to near a 4-week high against the US dollar and the Japanese yen in the Asian session on Monday amid optimism for a resolution to the debt problems in Europe.
The Canadian dollar also gained ground against the currencies of Europe and Australia.
Policy makers from the G-20 group of nations urged Europe to soon resolve their debt crisis that is hurting the global economy.
Finance ministers and central bankers from the world's leading nations met in France on Friday and Saturday to discuss ways to mitigate a worsening European debt crisis, along with other issues affecting the global economy.
In a communique, the G-20 said Europe needs to plan ways to fix the Euro-zone problems when EU leaders meet on October 23 for an Euro Area Summit in Brussels, where France and Germany are to articulate on ways to resuscitate an ailing banking sector.
With Greek on the brink of a default, the G-20 vowed to complement efforts to contain the spread of the crisis, stressing on the need to augment the impact of the European Financial Stability Facility, or EFSF - a 440 billion-euro rescue fund that can be used to recapitalize banks, buy sovereign debt, or lend to Euro-zone economies.
The Canadian dollar is now worth 1.0089 against the US dollar, its highest level since September 22. On the upside, 0.980 is seen as the next target level for the Canadian dollar. The greenback-loonie pair was quoted at 1.0107 at Friday's close.
Against the Japanese yen, the Canadian dollar is trading near a 4-week high 76.56, compared to Friday's close of 76.47. The next upside target level for the loonie-yen pair is seen at 79.0.
Japan's industrial production grew by revised 0.6 percent month-on-month in August, final data from the Ministry of Economy, Trade and Industry showed. The growth figure was downgraded from the preliminary estimate of 0.8 percent. On an annual basis, industrial production advanced 0.4 percent.
The Canadian dollar is now worth 1.0398 against the Australian dollar and 1.3980 against the euro. If the loonie gains further, it may target 1.385 against the euro and 1.035 against the aussie. The aussie-loonie and the euro-loonie pairs were worth 1.0453 and 1.4029, respectively at Friday's close.
Data released by the Australian Bureau of Statistics said early in the day that housing finance commitments for owner occupied houses in Australia rose a seasonally adjusted 0.6 percent month-on-month to A$14.513 billion in August.
Looking ahead, there are no major economic reports due in the upcoming European session.
(RTTNews) - Across the Atlantic, the U.S. empire manufacturing index for October and the industrial production for September are slated for release in the New York morning session.
