Canadian dollar was higher in earlier trading, but has now pulled back. Thanks to concerns about lower commodities and the fact that disappointing data out of China is weighing on sentiment and high beta currencies, the loonie is now losing ground in some cases, particularly against the greenback.
Trading for the Canadian dollar is a bit choppy right now. Earlier, the loonie saw gains against most of its major counterparts, but has since pulled back against some of its trading partners, particularly the greenback. Concerns about what’s next for the global economy are weighing on the Canadian dollar and other high beta currencies. News out of China has been disappointing, and there are worries about the slowing seen in the US economic recovery.
Also putting pressure on the loonie is the fact that commodities are lower today. The Canadian dollar is considered a commodity currency, especially tied to oil. With oil prices and gold prices struggling today, it is little surprise that a commodity currency like the Canadian dollar is struggling as well.
At 14:04 GMT the loonie is mostly lower against its major counterparts. USD/CAD is up to 1.1091 from the open at 1.1082. EUR/CAD is down to to 1.5215 from the open at 1.5217. GBP/CAD is up to 1.5810 from the open at 1.8490.
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