It’s been an interesting few days for the loonie, and today the Canadian currency is mixed on the Forex market. However, even with the mixed performance, the Canadian dollar is mostly higher against its major counterparts.
Even though things appear to be slowing a bit for the Canadian economy, the loonie is getting a little boost — at least against the US dollar. Recent housing starts data showed that things had slowed down in January, and that news weighed on the Canadian dollar. Also causing problems for the loonie was the fact that the United States announced that it will continue tapering efforts, representing a divergence in monetary policy between the two countries.
However, the big gains for the US dollar are being tempered today. Many Forex traders are taking their profits, and that is helping the Canadian dollar. Additionally, crude oil is above $100 a barrel, and that is positive for the loonie as well, since a large portion of the Canadian economy relies on oil exports. With oil prices rising, there’s some support for the loonie.
At 12:17 GMT USD/CAD is down to 1.0994 from the open at 1.1017. EUR/CAD is also lower, dropping to 1.4937 from the open at 1.526. GBP/CAD is higher, however, gaining to 1.8180 from the open at 1.8124.
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