Higher Oil Prices Help Canadian Dollar

Canadian dollar is getting a boost today, reaching its highest level against the US dollar in about nine months, and gaining against some of its other counterparts as well. Higher oil prices are providing support to the loonie today.

Loonie is getting help as oil prices rise today. Oil touched $45 earlier in the session, and although it is back below that level, oil is still higher on the day. Because the Canadian dollar relies so heavily on oil for its support, this has been a positive development for the loonie today.
Canadian dollar reached a level against the US dollar not seen since last summer, and it is also performing well against the UK pound. Loonie is down against the euro today, but that isn’t much of a surprise as the euro has been finding general support.
With the Fed unlikely to raise interest rates for a little while yet, the loonie could find more success as policy divergence is put off. The Bank of Canada is unlikely to raise its own rates anytime soon.
At 14:40 GMT USD/CAD is down to 1.2601 from the open at 1.2603. GBP/CAD is also lower, dropping to 1.8357 from the open at 1.8378. EUR/CAD is higher, gaining to 1.4257 from the open at 1.4239.

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