RTTN:Canadian Dollar Advances Against Greenback, Yen And Euro
(RTTNews) - The Canadian dollar surged higher against its US, Japanese and European counterparts in Asian deals on Monday after reports suggested that the the International Monetary Fund is likely to lend 600 billion euros to Italy as bond yields across the euro zone spiked to record highs.
La Stampa reported Sunday that the loan will give Italy's new Prime Minister Mario Monti about 12 to 18 months to launch economic reforms to balance its budget.
Italy would pay an interest rate of 4 percent to 5 percent on the loan, the newspaper said. According to La Stampa, the amount may vary between EUR 400 billion to EUR 600 billion.
The report also indicated that given the scale of the planned aid, it will be difficult for the IMF to operate on the currently available resources.
The Canadian dollar strengthened to an 11-day high of 1.3821 against the euro. The next upside target level for the loonie is seen at 1.380. The euro-loonie pair ended Friday's trading at 1.3887.
Against the U.S. dollar, the Canadian dollar jumped to a 5-day high of 1.0388, compared to Friday's close of 1.0491. On the upside, 1.035 is seen as the next target level for the Canadian dollar.
The Canadian dollar that closed last week's trading at 74.12 against the Japanese yen climbed to a 1-week high of 74.80. If the loonie-yen pair gains further, it may likely target the 75.5 level.
A monthly survey conducted by the Shoko Chukin Bank showed today that Japan's small business confidence indicator declined to 45.8 in November from 46.4 a month ago.
Looking ahead, German GfK consumer confidence index for December, Eurozone M3 money supply for October and the U.K. CBI reported sales for November are due in the European session.
From the U.S., new home sales for October is expected at 10 am ET.
