Canadian dollar is weaker today, heading lower as the US dollar shows strength, and as commodities fall back. Today, it’s not a lot about economic data — including trade data — and more about larger trends for the future. With expectations of a US economic recovery picking up the pace, the greenback is gaining the upper hand.
Loonie is lower against the greenback today, due mostly to the fact that the US dollar is strengthening across the board on an upbeat economic forecast from the Federal Reserve. Recently, the Bank of Canada left rates unchanged, and there are hopes that the United States might be done with quantitative easing — and may even raise its own rates ahead of time.
Also weighing on the Canadian dollar today are commodity prices. Loonie is linked to commodity performances, especially oil. With gold prices and oil prices both heading lower, it is little surprise that the Canadian dollar is also struggling. As the US economy strengthens, and as the speculation that has been propping up oil prices fades a little, the loonie can expect to struggle as well. Indeed, the Canadian dollar has long been near parity with the US dollar, and that could change.
At 14:18 GMT USD/CAD is higher at 0.9890, up from the open at 0.9888. GBP/CAD is lower, though, dropping to 1.5498 from the open at 1.5533.
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