Canadian Dollar still alright

Dollar has came back up over last few days. interesting article below i found on yahoo.

Loonie shakes off early losses amid fears of spreading Eurozone debt crisis

 
, On Tuesday July 12, 2011, 4:17 pm

By Malcolm Morrison, The Canadian Press

TORONTO - The Canadian dollar overcame an early, steep loss to close higher Tuesday amid growing fears that Italy and Spain will be the latest victims of the Eurozone debt crisis.

The dollar was up 0.3 of a cent to 103.5 cents US.

The currency had been as low as 102.31 cents earlier in the morning after increasing nervousness pushed traders to the safe haven status of the U.S. dollar.

Worries about the debt crisis spreading from countries such as Greece to larger Eurozone economies grew this week as the premiums demanded by investors to lend to Italy and Spain started to soar. The spread between the yield on Italian 10-year bonds and the benchmark German ones hit 3.1 per cent earlier Tuesday, while Spain’s rose to 3.42 per cent.

Spreads moderated somewhat and the euro bounced off early lows after Italian Premier Silvio Berlusconi said the government will bring forward the timetable it has for a raft of austerity measures so that the country can have a balanced budget by 2014.

Officials now say they want the measures passed by Sunday instead of sometime in August. There was also a successful auction of new Italian government debt.

Oil prices moved into positive territory as strength in the greenback moderated and the August crude contract on the New York Mercantile Exchange moved up $2.28 to US$97.43 a barrel after two days of steep declines.

A stronger greenback usually helps depress commodity prices, which are denominated in dollars, as it makes items such as oil and metals more expensive for holders of other currencies.

Metal prices recovered from early losses with the September copper contract ahead two cents at US$4.39 a pound.

Bullion prices also shook off declines as nervous investors sent the August bullion contract in New York up $13.10 to a record closing high of US$1,562.30 an ounce.

Gavin Heintz

Gavin Heintz

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