Canadian dollar is mixed today, turning in a spotty performance, as Forex traders weigh the week ahead. Commodities are lower, which affects the loonie, but there is also a small element of risk appetite, which is helping.
Right now, loonie is higher than the greenback, gaining ground on the idea that the Canadian economy is better off than the US economy. Against the UK pound, though, loonie lower. European currencies are getting a bit of a boost from the latest retail sales data out of Germany, which shows an increase.
However, there are still some questions about what’s next for the loonie. The Bank of Canada is expected to keep interest rates the same, rather than raising them, later this week. This points to concerns about economic growth, and the fact that it is slowing. Lower oil prices also won’t represent much help to the loonie in forex trading, since Canada relies a great deal on oil prices for support.
For now, Forex traders seem to be looking for direction, and trying to decide what is next for the Canadian dollar — and other currencies.
At 12:12 GMT USD/CAD is down to 1.0391, lower than the open at 1.0393. GBP/CAD is higher, heading up to 1.5981 from the open at 1.5966.
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