Canadian dollar saw some small gains earlier today as the Federal Reserve prepared to begin a two-day meeting. However, the loonie has since slipped a bit, and is a little lower. The ultimate result, however, is likely to be somewhat rangebound — at least for a little bit.
Loonie got a bit of a boost earlier as speculation about the Federal Reserve meeting took precedence. There is some expectation that the Fed could decide to boost its quantitative easing efforts, and that means a weaker US dollar, and gains for the loonie.
Even with risk appetite making an appearance, though, the Canadian dollar has been unable to maintain its gains. The loonie has slipped a bit. And, with oil prices paring their earlier gains, the Canadian dollar is running out of sources of support right now.
The future might be a little brighter, though. If the fiscal cliff issues are resolved in the United States, and if the Fed really does boost its QE efforts, the loonie will become more attractive to Forex traders.
At 15:30 GMT USD/CAD is slightly higher at 0.9871, up from the open at 0.9863, and up from the low of 0.9855. GBP/CAD is up to 1.5897 from the open at 1.5857. EUR/CAD is up to 1.2829 from the open at 1.2770.
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