Thursday, February 7, 2008

Canadian Dollar Mixed Versus Majors [USD/CAD]

The loonie was mixed against its major counterparts on Thursday. Investors mulled comments made by European Central Bank President Jean-Claude Trichet after the ECB decided to maintain its key interest rate.After today's ECB meeting, Trichet conceded that incoming data has confirmed the risks for Euro zone economic activity are to the downside, but was quick to point out that economic fundamentals are sound and that price stability remains the primary focus of the central bank.The loonie jumped to a monthly high versus the euro on Thursday. The Canadian dollar rose to 1.4581 by 1:00 pm ET, up from a morning low of 1.4751.Crude oil was down slightly in U.S. trading on Thursday after paring most of its losses. Light sweet crude for March delivery fell to $87.12, down 3 cents on the session. Oil fell as low as $86.24 in the early going, after reaching as high as $87.60 in electronic transactions.The Canadian dollar eased to a two-week low against the U.S. dollar on Thursday. The loonie slipped to 1.0127 by 8:30 am ET, down from 1.0047 earlier in the morning.Traders weighed two separate reports showing U.S. pending home sales fell more than economists had been expecting in the month of December and U.S. jobless claims fell by less than economists had been expecting compared to a two year high in the previous week.

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