Canadian Dollar Strengthens against US Dollar

As the Europeans announce a debt agreement, the Canadian dollar is strengthening against the US dollar. It’s been more than a month since the loonie has reached this level against the greenback, but some think that the strength is more a function of general greenback weakness today.
With the Bank of Canada forecast for Canadian economic growth cut earlier this week, there isn’t a whole to cheer about in terms of the loonie. Indeed, the Canadian dollar is down against a number of other major currencies on the Forex market. However, with the US dollar generally weak right now, thanks to strides made in Europe, the loonie is making up ground against at least one currency.
Also helping to support the loonie today against the greenback is the fact that oil prices are higher. The Canadian dollar gets help from higher oil prices, since oil is a major export. Plus, higher commodities usually mean a lower greenback, due to the usually inverse relationship between the US dollar and oil. However, we will have to wait and see if the loonie can maintain its position above parity. With US news improving, it could be the greenback finds some strength after all.
At 13:22 GMT USD/CAD is lower at 0.9924, down from the open at 1.0032. EUR/CAD is heading higher, at 1.4027. up from the open at 1.3928. GBP/CADis lower at 1.5952, down from 1.6021.

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