The Canadian dollar rose to near a 2-week high against the euro in early European deals on Tuesday.
The loonie also remained higher against the aussie, but recovered its recent losses against the dollar and the yen.
Traders are now focusing on the Statistics Canada’s trade balance report for May, which is slated for release at 8:30 am ET.
Against its U.S. counterpart, the Canadian dollar recovered its recent losses in early European deals on Tuesday. Currently, the loonie is worth 1.0329 against the greenback, compared to low of 1.0388 hit at 2:30 am ET. If the loonie gains further, it may target around the 1.030 level. At yesterday’s close, the loonie was worth 1.0371 against the greenback.
The loonie rose to near a 2-week high of 1.2955 against the euro at 5:00 am ET with 1.270 seen as the next upside target level. As of now, the pair is worth 1.2970. At yesterday’s close, the loonie was worth 1.3059 against the euro.
The euro plunged in European session today after Moody’s Investors Service downgraded Portugal’s government bond ratings to A1 from Aa2.
Adding to euro’s slide, a separate report showed that Germany’s economic sentiment index fell in July.
The German wholesale price index and the French CPI – both for June which were also released today likely influenced the euro.
The loonie gained versus the Australian currency during Tuesday’s early European deals. At present, the loonie is worth 0.9033 against the aussie, compared to yesterday’s close of 0.9084. The loonie may target around the 0.899 level, if it gains further.
The loonie is now trading at 85.74 against the yen, from a low of 85.23 hit at 4:05 am ET. On the upside, the loonie may target around the 86.0 level. At yesterday’s close, the loonie-yen pair was worth 85.51.
In economic news, the Japanese consumer confidence improved for the sixth straight month in June, rising to its highest level in thirty-three months, signaling that economic recovery is gaining traction, official data showed today.
The headline consumer confidence index rose to 43.5 in June, the highest reading since September 2007, from 42.8 in May, a survey by the Cabinet Office showed. Economists had expected the index to stay at 42.5, almost unchanged from May.
Across the Atlantic, the U.S. trade balance data for May is due at 8:30 am ET.
The U.S. monthly budget statement for June, which is due out at 2:00 pm ET may also garner market attention in the North American session.