Canadian Dollar Gains on Optimism in the United States

Canadian dollar is higher against the US dollar today as optimism makes an appearance. US markets are showing improvement as consumer confidence gives stocks a boost, and provides hope for a US economic recovery.

The United States is Canada’s largest export market, and hopes that US consumers are ready to spend again are helping the loonie in Forex trading. Indeed, loonie is is seeing some solid gains today, thanks to the optimism returning to the markets. For today, the currency is tracking stocks higher.
Additionally, the Canadian dollar is getting some support from the fact that oil prices are higher. Oil prices are once again above the $100 a barrel mark. Canada’s currency depends heavily on the natural resources that it exports, and oil is a major export. Indeed, Canada is the largest supplier of oil to the United States. With consumer confidence returning to the USA, it is little surprise that the loonie is getting a bit of a boost.
There are still some issues that could limit the loonie’s gains. There are still concerns about what a eurozone collapse could mean for the global economy, and the United States could still slide backward, erasing its recent gains.
At 15:41 GMT USD/CAD is lower at 1.0197, down from the open at 1.0203. GBP/CAD, though, is higher at 1.5975, up from the open at 1.5950.

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