A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto in this January 23, 2015, file photo. The Canadian dollar pared earlier session losses against its U.S. counterpart on Tuesday, strengthening after data showed January growth was better than feared. REUTERS/Mark Blinch/FilesMARK BLINCH/Reuters
The loonie experienced modest fluctuations throughout the day, slipping as low as 79.36 cents US at 9:25 am and then recovering to close at 79.61 cents US, down just .0001 cents or .12% below Thursday's close. The CAD was under pressure from sinking oil prices and the prospects of a US and Iranian nuclear deal next week that could immediately lift sanctions, free up Iranian cash, and bring even more oil to market.
The CAD also continues to grapple with the prospect of a recession as a growing number of analysts suggest that the pace of the economic contraction meets the technical requirements for a downturn. Amid a host of bearish reports and StatsCan data, Finance Minister Oliver firmly rejected the notion on Friday and suggested a coming upturn and renewed economic growth later in the year.
The USD also lost momentum in the wake of disappointing data from a host of indicators released Thursday along with uncertainty about the Greek Referendum on Sunday. Volume was light as US financial markets were closed on Friday in observance of American Independence Day tomorrow, July 4th.
Greece, which is currently in technical default, votes Sunday on a Euro bailout package that renews austerity measures in exchange for an injection of cash and a much needed capital infusion. A "No" vote could mean an exit from the Eurozone and thrust the Greek economy into chaos. A "Yes" vote would result in mandatory spending cuts, broader tax hikes, and a host of unpleasant economic reforms.
Greeks took to the streets on Friday with rallies both for and against the vote as polls indicate that the country is almost evenly split on the referendum. Prime Minister Tsipras has urged voters to reject the deal from international creditors which he has characterized as "blackmail."