Canadian Dollar Declines As Lira Crisis Sparks Contagion Fears
August 13 2018 - 2:52AM
RTTF2
The Canadian dollar slipped against its major counterparts in
the European session on Monday amid risk aversion, as investors
kept an eye on a worsening trade dispute between the United States
and Turkey.
The lira recouped some losses after hitting a new record low
early today on concerns about a deepening rift with the United
States.
Investors continue to worry about potential contagion from
Turkey's woes to other emerging markets.
Turkish President Recep Tayyip Erdogan blamed the currency's
plunge as "a plot against Turkey" and said he would seek new new
alliances and markets unless the U.S. did not back off its hostile
stance.
The currency has been trading in a negative territory against
its major rivals in the Asian session, with the exception of the
aussie.
The loonie declined to 1.3170 against the greenback, its lowest
since July 24. The loonie is likely to challenge support around the
1.33 level.
The loonie fell to 1.4996 against the euro and held steady
therafter. If the loonie falls further, 1.52 is likely seen as its
next support level.
The loonie weakened to a 1-1/2-month low of 83.63 against the
yen, from last week's closing value of 84.34. On the downside,
82.00 is possibly seen as the next support level for the
loonie.
On the flip side, the loonie edged up to 0.9558 against the
aussie, from a low of 0.9592 seen at 7:15 pm ET. The next likely
resistance for the loonie is seen around the 0.94 level.
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