The Canadian dollar traded lower today against its US counterpart, falling to a three week low in early Asian session hours due to the results of the French and Greek elections. Risk aversion on concerns of a new wave of anti-austerity governments in Europe weighed on the commodity-price-sensitive loonie as crude oil prices tumbled. Canada is a major oil exporter. Crude fell to US $95, down almost $10 since the beginning of May.
USDCAD rose to near parity, hitting 0.9985, extending its advance from Friday following disappointing US on-farm payroll numbers which added to damp sentiment. The focus is now on Canadian employment data scheduled for this coming Friday. Today, a Canadian building permits report surprised markets and showed a rise in building permits by 4.7 percent from February to March, despite expectations for a drop by 0.5 percent. This helped support the CAD from a further fall.