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Forex - Loonie climbs vs. greenback as Europe debt fears wane

Published 05/12/2010, 06:35 AM
USD/CAD
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CAD/JPY
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Investing.com – The Canadian dollar climbed against the greenback on Wednesday, as fears over the euro zone debt crisis waned and ahead of key reports on the trade balances of Canada and the United States.

USD/CAD shed 0.52% to hit 1.0165 during European late morning trade, as the pair approached Tuesday's 5-day low of 1.0149. The pair was likely to find support at 0.993, the low of April 21, and resistance at 1.0742, the high of May 6.

Earlier Wednesday, the Spanish prime minister, Jose Luis Rodriguez Zapatero, pledged that his country would cut state employees' wages and slash investment spending in order to combat its budget deficit.

"We need to make a singular, exceptional and extraordinary effort to cut our public deficit and we must do so now that the economy is beginning to recover," Reuters quoted Zapatero as saying.

Meanwhile, the loonie also rose versus the yen, with CAD/JPY jumping 0.84% to reach 91.4.

Later in the day, the U.S. Bureau of Economic Analysis and Statistics Canada were due to publish key reports on their countries' trade balances, the difference in value between imported and exported goods.

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