Source: The Canadian Press
The Canadian dollar kicked off the new year above parity, but fell slightly from Friday’s two-year high as commodity prices pulled back from record territory.
The loonie gave back 0.39 cents to close the trading day at 100.15 cents U.S.
Recent strength in the Canadian dollar has been fuelled by higher crude prices, which peaked early Tuesday at a two-year high before losing ground.
The February gold contract lost $44.10 — or 3.1% — to US$1,378.80 per ounce after hitting a record high of $1422.90 Monday.
The February crude contract lost $2.17 — or 2% — to settle at US$89.38 a barrel after climbing to a 26-month high of $92.07 a barrel earlier in the day, as investors wondered if the price of crude has climbed too high, too fast.
The March copper contract on the Nymex fell nine cents to US$4.37 per pound after reaching a record high of $4.46 Monday.
The Canadian dollar closed above parity against the U.S. currency Friday at 100.54 cents U.S., its highest close since May 2008.
The U.S. dollar lost ground against most G7 currencies on thin trading over the holiday.
Investors are looking toward North American employment data set to be released Friday, which will impact the direction of the Canadian and U.S.
Good news will help the Canadian dollar gain further traction and bad news could see it slip.