Canadian dollar is heading lower today, despite the fact that oil prices are finally on the rise again. With so much risk aversion, the loonie is down in large part due to a desire to shore up with safe haven currencies as the markets struggle.
Loonie has been struggling in recent months as oil prices steadily decline. With global oil production outpacing demand, prices have dropped, impacting the Canadian dollar. However, thanks to recent
However, thanks to recent tensions in the Middle East, oil prices are rising again, although they are still below $40 per barrel. Saudi Arabia and Iran have severed diplomatic ties, and other Sunni-led governments in the Middle East are moving to take action against Iran as well. As a result, there is concern about the oil supply and prices are rising.
For now, though, this isn’t helping the Canadian dollar. There is too much else going on that is contributing to risk aversion. The latest disappointment out of China is sending global stocks lower, including the TSX, and that is having an impact on high beta currencies like the loonie, although some think that now is the time to buy, while prices are low.
At 15:19 GMT USD/CAD is up to 1.3901 from the open at 1.3833. EUR/CAD is up to 1.5089 from the open at 1.5010. GBP/CAD is up to 2.0487 from the open at 2.0380.
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