Canadian dollar is inching higher against its major counterparts, gaining ground as Forex traders consider their positions, and as the situation changes for the currency. Loonie is finding a little support ahead of next week’s BoC meeting, but general weakness is likely to remain.
Loonie is a little higher today, gaining ground as disappointing earnings reports weigh on the US dollar. Drops in the euro and the UK pound relative to the loonie are likely the results of profit taking.
The gains by the Canadian dollar are relatively small today, largely because there are expectations that the Bank of Canada will do very little to change course next week. The BoC is likely to remain somewhat dovish, and economic data in Canada remains relatively weak as well.
Loonie might be enjoying this brief respite and having a bit of a comeback, helped along by slightly higher oil prices and disappointments elsewhere. But there is no doubt that Stephen Poloz is still in favor of a weaker loonie in the name of economic stimulus, and that means that the Canadian dollar is likely to struggle for quite some time yet.
At 13:55 GMT USD/CAD is down to 1.0922 from the open at 1.0947. EUR/CAD is down to 1.4887 from the open at 1.4891. GBP/CAD is down to 1.7878 from the open at 1.7922.
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