Canadian dollar saw some measure of recovery yesterday, thanks in large part to recovering oil prices. Today the loonie is struggling again, falling as Forex traders consider the future of the Canadian economy, and as some engage in profit taking.
Oil prices have been heading a little bit higher in recent weeks. Since the Canadian dollar’s 13-low in January, the currency has seen a fairly decent gain, especially against the US dollar. It’s been one of the better-performing commodity currencies.
Yesterday, the Canadian dollar saw some success against its major counterparts, helped along by oil prices. However, the loonie may not be ready to recover quite so much. The Canadian economy is still shaky, with the possibility of a housing bubble that might burst, and continued concerns about oil prices.
Even though oil prices have been rising recently, there are plenty of factors present to weigh on them in coming weeks. As a result, the Canadian dollar is falling back a little on profit taking and worries about what’s next, although it is still slightly higher against the greenback.
At 15:04 GMT USD/CAD is slightly lower, dropping to 1.3389 from the open at 1.3397. EUR/CAD is up to 1.4774 from the open at 1.4685. GBP/CAD is also higher, moving up to 1.9053 from the open at 1.9009.
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