Forexpros – The Canadian dollar reversed earlier losses against its U.S. counterpart on Friday after approaching the pair’s lowest levels for 2012, but remained low due to concerns the European debt crisis will rattle the global economy.
In U.S. trading on Friday, USD/CAD hit 1.0224, up 0.27%, up from a low of 1.0139 and off a high of 1.0227.
The pair sought to test support at 1.0139, the earlier low, and resistance at 1.0284, the high of Jan. 13.
Concerns that Greece is headed for the exit door in the eurozone have been growing, namely due to a political backlash against the austerity measures imposed on the country in exchange for bailout money.
European officials are working on a contingency plan should Greece exit the eurozone, which managed to boost the euro against the U.S. dollar although the Canadian currency remained lower.
Hints of loose monetary policies out of the U.S. also pushed the greenback down.
Earlier this week, the U.S. Federal Reserve released the minutes of its latest monetary policy meeting, in which members suggested they would favor stimulating the economy should recovery veer off course.
While such news sent the greenback lower against other currencies on Friday, the Canadian dollar remained weak on concerns that lackluster growth will crimp demand for the country’s commodities and other growth-sensitive products in both Europe and in the United States.
The Canadian dollar, meanwhile, was down against the euro and down against the yen, with EUR/CAD up 0.86% and trading at 1.3058 and CAD/JPY down 0.59% at 77.29.
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