Loonie drives toward third-straight losing streak

The value of Canada's currency dropped on Tuesday against its southerly rival, pulled down by economic data indicating the sovereign debt scourge reduced the pace of production at factories in Germany, Reuters reports.

For a third consecutive trading session, the Canadian dollar lost value to the greenback. Those losses were tempered by indications that the economy of China, the globe's second largest, slightly improved. Generation from factories in the Asian nation last month increased and notched the fastest pace in nine months.

"Europe continues to dominate the market's focus here," director of foreign exchange sales Matt Perrier with BMO Capital Markets told the news source. "It's a bit of good news after some disappointing numbers out of China but one number doesn't a trend make so I think the market is more clearly focused on Europe at this point and concerns over spreads and everything else that's going on there."

Spanish debt yields were pushing higher on Tuesday as the nation was believed to be nearing a full rescue that the 17-nation bloc might have trouble affording.

Bloomberg reports the Canadian dollar dropped 0.6 percent on Monday, representing the biggest loss thus far this month.