Canadian Dollar Loses Ground

Canadian dollar is losing ground today, heading lower as the situation in the United States weighs. Even though oil prices are higher, and risk appetite seems somewhat apparent, the loonie is struggling.

The Canadian dollar is running into trouble today. Even though oil prices are slightly higher, the loonie hasn’t benefited. Instead, the Canadian currency is being affected by the stalled fiscal cliff negotiations. Even though some progress has been made, and both sides are offering compromise, a deal is still not done. As a result, the loonie is being affected by the uncertainty related to the fate of Canada’s largest trading partner.
And, as the US session gets underway, the loonie is losing even more support as oil prices pare gains. Commodities are struggling right now, and risk appetite is fading a little bit (although it is still there, in the background). For now, there is just too much uncertainty in general, and too much uncertainty about the US economy specifically, for the loonie to make solid progress.
At 14:45 GMT USD/CAD is higher at 0.9873, up from the open at 0.9857. GBP/CAD is also moving higher to 1.6081, up from the open at 1.6020. EUR/CAD is higher as well, moving up to 1.3131 from the open at 1.3044.

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