Canadian dollar is getting a boost today, heading higher as economic data in Canada shows a measure of improvement. Home prices in Canada rose 0.1% in July, and the economy has never been as badly off as the US economy. Also helping the loonie is the increase in oil prices.
Loonie was a little bit higher earlier today, getting a boost as better economic data in Canada contrasted with the continued sluggishness seen in the United States. On top of that, expectations that more quantitative easing would be seen in the United States was helping a number of currencies against the dollar.
Now, though, a combination of uncertainty, profit taking, and consolidation has entered the mix and the loonie is losing ground. Instead of gaining, the Canadian dollar is lower against the US dollar, even as it gains against some of the other currencies. Canadian dollar also isn’t reaping much benefit from the higher oil prices seen right now. Usually, loonie is supported by oil prices, but right now there are other factors at work. Ben Bernanke’s announcement later today should provide more clarity for markets and currencies.
At 13:51 GMT USD/CAD has moved into the black, at 0.9766 up from the open at 0.9762. GBP/CAD is down to 1.5717 from the open at 1.5726. EUR/CAD is up to 1.2604 from the open at 1.2594.
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