Loonie moves up vs. USD amid risk taking
- Last Updated on 09 February 2012
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The Canadian dollar saw some fairly substantial gains against its American counterpart in trading on Tuesday. The loonie was bolstered following meetings between euro-zone leaders which led to risk taking among investors. The CAD, which is largely linked to commodity and equity prices, tends to move up following positive euro-zone news.
Whether the CAD will be able to maintain its gains today is still unknown. The euro-zone situation is still extremely fragile. Any news that creates doubt in the European economic recovery could cause the loonie to reverse course. Furthermore, should the euro-zone crisis worsen, the CAD is likely to turn bearish extremely quickly.