Commodity currencies are still clinging to gains, even after a bit of a pull back following yesterday’s commodity-fueled run. Canadian dollar is one of those that remains mostly higher against its major counterparts, logging gains against the US dollar.
Canadian dollar remains mostly higher today, even though it is slipping against the UK pound. Against the US dollar and euro, though, the loonie retains the upper hand. Yesterday, commodity currencies rallied, even after worries about China persisted. The reality that China’s growth may not be as spectacular as expected is sinking in, and impacting commodity currencies — especially as rumors swirl that the yuan will likely float more freely in years to come.
Loonie, though, is still managing to cling to some of its earlier gains. Even though risk appetite is fading, the high beta currency is doing reasonably well. Gold might be dropping, but oil prices are a little higher, and oil is influential when it comes to the Canadian dollar.
Some analysts think that the loonie will remain mostly stable, unless the Bank of Canada makes an unexpected interest rate cut; in that case the Canadian dollar would struggle.
At 12:55 GMT USD/CAD is down to 1.1091 from the open at 1.1102. EUR/CAD is down to 1.5269 from the open at 1.5298. GBP/CAD is up to 1.8445 from the open at 1.8410.
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