Canadian Dollar Bounces Back After Earlier Losses

Canadian dollar was losing ground to its major counterparts earlier, but now the loonie has bounced back a bit. Speculation about the eurozone, along with concerns about what’s next for the US dollar, not to mention the results of profit taking, are helping the Canadian dollar inch a bit higher.

Canadian dollar plunged lower, along with oil prices, in trading yesterday and earlier today. With supply data from North America confirming surplus inventories, there’s not a whole to support oil prices right now, and OPEC continues its policy of non-interference in this matter.
Supply news sent the loonie lower, since the Canadian dollar relies heavily on oil for its support, and oil is a major factor in the Canada’s economy.
Today, though, the loonie has bounced back some, even with oil prices headed down toward the $50 a barrel level. Profit taking is helping to some degree, as is the speculation about what’s happening elsewhere. In Europe, Greece continues to cause discomfort, especially as it looks as though a showdown with Germany is still coming.
At 11:32 GMT USD/CAD is lower, falling to 1.2455 from the open at 1.2497. EUR/CAD is also lower, dropping to 1.4095 from the open at 1.4197. GBP/CAD is down to 1.9113 from the open at 1.9260.

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