Canadian Dollar Clings to Gains

Canadian dollar is clinging to gains, struggling to retain the upper hand as risk aversion begins to creep into the picture. Loonie is slightly higher against the US dollar, as well as against the UK pound and the euro.

US durable goods orders contracted more than expected in January. Some expected that news to take a bigger toll on the Canadian dollar, since the United States is Canada’s biggest trading partner. However, the news hasn’t had as great an impact as expected.
Loonie is also higher against the euro and the UK pound. Troubles in Europe are once again emerging with the Greek restructuring deal, as well as the downgrade of Greece. However, euro and pound have managed to retain gains against the US dollar — even though they are lower against the better-prepared loonie.
Canadian dollar might also be getting some support from oil prices that remain relatively high. Even though oil prices were a little lower earlier, they have moved to slight gains. Some believe that oil remains overbought. However, as long as oil prices are up, the loonie should find some support in Forex trading.
At 15:32 GMT USD/CAD is down to 0.9962 from the open at 0.9989. GBP/CAD is lower at 1.5766, down from the open at 1.5807. EUR/CAD is lower at 1.3360, down from the open at 1.3373.

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