Canadian dollar is getting a little help today, heading higher after recent losses. The loonie’s success against the greenback is being helped along by higher commodity prices.
Canadian dollar is getting a boost against the US dollar today, following a few days of relative weakness. The Bank of Canada recently lowered its economic growth forecast for the country, and it wasn’t helping that commodities were heading lower, either. With oil prices struggling, the Canadian dollar was displaying difficulty, since oil is a major export, and a major source of economic support.
Commodity prices are on the rise again, though, and that is helping the Canadian dollar. Loonie is a commodity currency, and sensitive to price changes. With gold trying to regain the $1,400 an ounce level, and with oil prices back above $87 a barrel, loonie is getting some help.
However, the help might be short-lived. If concerns about the global economy continue, high beta currencies like the loonie will be sold in favor of safe haven currencies like the US dollar. For now, though, Canadian dollar is working on a recovery.
At 16:35 GMT USD/CAD is down to 1.0254 from the open at 1.0266. EUR/CAD is up to 1.3427 from the open at 1.3378. GBP/CAD is up to 1.5695 from the open at 1.5643.
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