Loonie Drops as High Beta Currencies Fall

Canadian dollar is struggling today, especially against the US dollar, as concerns in Europe, as well as uncertainties elsewhere weigh on riskier assets. As equity markets fall, and commodities pull back, high beta currencies like the loonie are headed lower.

Earlier, Canadian dollar had some success against the US dollar, but there is just too much going on right now for high beta currencies like the loonie to maintain gains against a safe haven currency like the greenback. Canadian dollar is being dragged down by Europe, as well as lower commodities and anxiety about the US Supreme Court ruling.
Right now, concerns are that the EU summit will be unable to come up with a solution for the long-term troubles besetting the eurozone. While more stopgap measures are likely, any sort of permanent solution remains as elusive as it has in the past. This uncertainty is dragging down assets considered higher risk, including the Canadian dollar.
Oil prices are lower as well, and that will weigh on the loonie, which depends on oil for support. Other commodities, like gold, are also pulling back. Commodity currencies are down, and the Canadian dollar is one of those.
At 14:09 GMT USD/CAD is up to 1.0321 from the open at 1.0249. GBP/CAD is also higher, at 1.6020, up from the open at 1.5957.

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