Loonie is heading lower against the greenback today, dropping as safe haven currencies gain the advantage over their riskier counterparts. Canadian dollar is losing ground against the US dollar, but gaining against European currencies, as fears of recession set in.
The latest news out of Asia and the eurozone has encouraged risk aversion on the Forex market, and that is sending many high beta currencies lower. The loonie is losing ground against the greenback as a result. It’s also not helping matters that oil prices are falling. As a commodity currency, particularly one tied to oil, the Canadian dollar is influenced by changes in price. With commodities dropping, the pressure is on the loonie.
Even though the Canadian dollar is down against its US counterpart, the currency is finding success against European currencies. The loonie is higher against the euro, as well as against the UK pound. With concerns about Germany weighing on the eurozone, and with the UK economy still struggling, the Canadian dollar, with its relatively strong economy, has the upper hand.
At 13:13 GMT, USD/CAD is higher, moving up to 0.9778 from the open at 0.9772. EUR/CAD is lower, though, headed down to 1.2681 from the open at 1.2716. GBP/CAD is also lower, down to 1.5678 from the open at 1.5765.
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