Canadian dollar is losing ground today, dropping as the the US Federal Reserve considers reducing its economic stimulus efforts. It’s also not helping the loonie that oil prices are dropping again.
Dollar strength is the story across the board today, and that is affecting the loonie as well. The news that the Federal Reserve might reduce its quantitative easing program is contributing to dollar strength today, and the Canadian dollar is following those flows.
With the dollar stronger, commodities are struggling. Oil prices are lower today, and that affects the loonie as well. Oil is Canada’s main export, and lower oil prices mean a weaker Canadian dollar. As a result, it is little surprise that the Canadian dollar is a little bit lower, too.
Many Forex traders are also looking forward to changes coming in Canada and speculating about what’s next. Bank of Canada head Mark Carney will soon move across the Atlantic to take over as the head of the Bank of England, and there is interest in what happens next for policy after he is gone.
At 13:10 GMT USD/CAD is up to 1.0283 from the open at 1.0242. EUR/CAD is up to 1.3231 from the open at 1.3194. GBP/CAD is little lower, moving down to 155.6145 from the open at 1.5625.
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