The Canadian dollar lost ground against the greenback following a shift in market sentiment and the drop in risk appetite may drag on the exchange rate over the coming week.

The Canadian dollar is likely to face increased volatility over the following week as the economic docket is expected to reinforce an improved outlook for growth and inflation.

Traders will watch for any surprises from the upcoming release of the RBA's Meeting Minutes from its June interest rate decision.

Looking ahead to this week, the economic docket is fairly quiet for the loonie as Canadian dollar traders await the new housing price index in April.

The Canadian dollar may find itself taking over the role that the Australian dollar has so clearly coveted since the global economic recovery took hold last year.

The Canadian dollar has continued to lose ground against the U.S. dollar, finishing as the fourth-worst performing G-10 currencies through Friday’s close.

The Canadian dollar pared the four-day rally as investors scaled back their appetite for risk, and the currency is likely to face increased volatility over the following week.

The Swiss franc is likely to remain volatile next week after the currency fell to a record low against the euro.

The economic docket for the following week is expected to show manufacturing expanding at a slow pace in April.

The Swiss franc started the past week on a strong note as numbers were put to an IMF-Euro member bailout for Greece, easing concerns that the troubled nation would default on their debt.