USD/CAD recovers on lower risk appetite

The Canadian dollar weakened against the greenback on Monday, giving up early gains as it got caught in a flight from riskier assets sparked by the continuing investor retreat from emerging markets.

A combination of country-specific problems and expectations that the U.S. Federal Reserve will scale back its economic stimulus program kept pressure on emerging markets in a selloff that started last week.

The emerging-market concerns also weighed on equities and oil prices, while supporting the U.S. dollar. The search for safer assets had earlier boosted the loonie’s appeal, but that did not last through the session.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu