CAD Ekes Out Gains as Oil Nears $60 a Barrel

Canadian dollar is heading a little bit higher today against some currencies, gaining ground as oil improves and as worries that the Bank of Canada will cut its rates further subside a little bit.

Loonie is doing better today, and some analysts believe that the worst is behind it. The Canadian dollar has been struggling for quite some time, especially against the US dollar. With rates cuts from the Bank of Canada and dropping oil prices, there hasn’t been much to support the loonie.
Now, though, some think that the worst is over and that things will stabilize with the Canadian dollar. Crude oil prices are approaching $60 a barrel â€” an improvement from when they touched below $50 a barrel not too long ago. The economy has also shown some improvement, and speculation that the Bank of Canada will cut rates below the current 0.75 per cent is decreasing.
There are some, though, that think loonie is still overvalued, which could lead to some losses in the near term. Even so, the loonie is likely to avoid some of the precipitous drops seen earlier this year.
At 10:42 GMT USD/CAD is down to 1.2095 from the open at 1.2096. EUR/CAD is down to 1.3440 from the open at 1.3483. GBP/CAD is up to 1.8294 from the open at 1.8286.

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