Canadian dollar is higher today, and so are copper prices. While we often think of the loonie as a petrocurrency, the truth might be that it is really more closely related to copper — and that might be giving the Canadian dollar a boost today.
Canadian dollar is heading higher today, thanks in part to the gains in some commodities. Even though oil is lower today, loonie is higher, following the performances of metals.
Indeed, some analysts have recently noted that the Canadian dollar seems to be more closely related to copper than to other commodities in recent years. Loonie has been following along with copper, and has experienced a bit of a surge in recent weeks as copper prices have traded near their five year peak.
Of course, commodities like copper aren’t the only factors influencing the loonie in Forex trading. While the Canadian dollar is higher today, there are concerns that the Bank of Canada could lead to a lower loonie sometime soon. The tone of Canada’s central bank has been a bit shifty since Stephen Poloz took the helm, and that is undercutting the loonie.
At 13:22 GMT USD/CAD is down to 1.0671 from the open at 1.0678. EUR/CAD is down to 1.4524 from the open at 1.4536. GBP/CAD is down to 1.8258 from the open at 1.8293.
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