The Canadian dollar declined as the prices for the crude oil slipped after the concerns about the impact of the tension in Egypt on the supplies receded, but the fundamentals look very supportive for the Canadian currency.
The tensions in Egypt slowly recede and the rumors say that the current president may step down as the protesters demanded. With lower risk for supplies the crude oil now looks a bit expensive for the traders. As a result, the futures on the crude oil dropped as much as 2 percent to $87.24 per barrel after the price reached $87.18, the lowest level since January 28. The performance of the crude oil has direct impact on the loonie (the nickname of the Canadian currency) as the crude is the main export of Canada.
Despite the current decline of the crude oil and the Canadian dollar, the future of the currency doesn’t look grim. The economists think that the decline of the oil prices is temporary as the demand for the fuel will grow while the global economic recovery progresses. Commodities look strong and that is good for the loonie as it’s the
USD/CAD traded near its opening level of 0.9905 today as of 00:34 GMT after it rose from the opening rate of 0.9871 and the intraday low of 0.9855 to 0.9906. EUR/CAD traded near the opening level of 1.3455 after it advanced to this price yesterday from 1.3392 after reaching the intraday low of 1.3343.
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