Loonie is once again heading lower against the greenback, thanks in large part to oil prices. Even though the Canadian dollar is struggling against its US counterpart, though, it is gaining ground against European currencies. Concerns about what’s next in Europe, especially with sluggish Chinese data and policy statements coming tomorrow, are weighing on currencies across the pond.
Canadian dollar is struggling as oil prices continue to drop. Saudi Arabia has cut the price of the oil it exports to North America, and this is forcing oil prices down elsewhere as well. The loonie relies heavily on oil prices for support, and with oil falling back, the Canadian dollar is losing ground to the US dollar. The Saudis are interested in making its own production more attractive, since the United States produced more oil in September. The idea is to make oil cheap enough for Americans to buy it, rather than produce it.
However, even though the loonie is struggling against the greenback, it is gaining ground against its European counterparts. Many analysts are waiting for policy announcements and forward guidance from the ECB and BOE tomorrow.
At 11:54 GMT USD/CAD is up to 1.1448 from the open at 1.1410. GBP/CAD is down to 1.8193 from the open at 1.8253. EUR/CAD is down to 1.4288 from the open at 1.4315.
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