CAD Lower Ahead of Greek Debt Approval

The Canadian dollar was lower while the American currenty strengthened ahead of a deadline set for Monday night when Greece is due to submit proposed reforms to get final approval for an extension to rescue loans.

The loonie fell 0.44 of a cent to 79.27 cents US.

The Greek government government and its creditors agreed Friday to extend the country’s rescue loans by four months. In return, Greece would have to commit to a series of budget measures meant to keep a lid on debts and improve the economy. The Greek government is due to submit its proposal to debt inspectors later Monday to receive final approval.

The U.S. dollar’s strength against other currencies is pressuring commodity prices generally, while crude prices are also affected by a sharp increase in inventory levels..

The April crude contract in New York dropped $2 to US$49.87 a barrel early Monday. Prices have fallen about 40 per cent since the end of November amid a huge oversupply of crude on world markets.

Metals were also weak with March copper two cents lower to US$2.58 a pound while April gold faded $8.80 to US$1,196.10 .

The Federal Reserve is also in focus this week with chairwoman Janet Yellen set to deliver her semi-annual testimony on the economy and monetary policy to Congress on Tuesday or Wednesday. Traders will look to her remarks to indications on when the Fed might start raising interest rates. Many analysts think the Fed could move as early as June.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza