Loonie is getting a boost today, thanks in large part to the fact that the world appears to be calming down and risk appetite is returning. Thanks to expected improvements to the Canadian economy, and to an improving situation around the world, the Canadian dollar is heading mostly higher today.
Even though the Bank of Canada is expected to keep its rate relatively low, at 1 per cent, until next year, there is still some optimism about the Canadian economy. Many expect to see better employment data on Friday, and there are hopes that the housing bubble has been mostly contained.
Also helping the loonie in Forex trading is the fact that things around the world have calmed down. Russia ordered its troops back to base, effectively ending its quasi-invasion of Ukraine. However, there are still some concerns that Russians will return to the Crimea. Additionally, China is opening up to more private investment and promising to keep economic growth at 7.5 per cent for the rest of the year.
All of this good news is boosting risk appetite and helping the loonie.
At 15:09 GMT USD/CAD is down to 1.1071 from the open at 1.1100. EUR/CAD is down to 1.5181 from the open at 1.5250. GBP/CAD is also lower, dropping to 1.8489 from the open at 1.8504.
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