The Canadian dollar extended slide against its key counterparts on Monday’s New York deals, as investor sentiment faded on concerns over Greece’s cash crunch, with no deal in sight to meet its debt obligations.
Greek Prime Minister Alexis Tsipras is insisting that a deal should be reached with its international creditors without pension and wage cuts, even though it is facing stiff challenges concerning looming IMF payments in June.
While Greece is sticking pledge to anti-austerity drive, the European Commission is insisting Greece to speed up the pace of reforms to release financial aid, making talks tougher.
Meanwhile, oil prices are trading higher as fighting over Middle East eclipsed concerns over supply glut. Crude oil prices bounced back to $60 a barrel amid renewed conflict in Iraq and Yemen.
The loonie was trading in a negative territory in the European session.
The loonie declined to a 1-week low of 1.2131 against the greenback, compared to 1.2009 hit at last week’s close. The loonie may possibly challenge support around the 1.22 mark.
Reversing from an early high of 99.55 against the yen, the loonie slipped to weekly low of 98.72. At last week’s close, the pair traded at 99.33. Continuation of the loonie’s downtrend may lead it to a support around the 98.00 mark.
The loonie fell to a 2-1/2-month low of 1.3785 against the euro and a 4-day low of 0.9695 against the aussie, off early high of 1.3694 and a multi-day high of 0.9622, respectively. If the loonie continues slide, it is likely to find support near 1.39 against the euro and 0.975 versus the aussie.
The material has been provided by InstaForex Company – www.instaforex.com