Canadian dollar is higher against its major counterparts today as oil prices gain ground. Also helping the loonie is the upbeat economic forecast from the Bank of Canada. There seems to be a lot of loonie-positive news, and that is fueling demand in Forex trading.
Oil prices have finally moved above the psychologically important $50 a barrel mark. Prices have been flirting with that level for weeks, and now oil has finally broken through. This is good news for Canada, a country that depends heavily on oil revenue for economic stability and growth. As a result, the loonie is moving higher today.
The Canadian dollar was already getting some help, however. Yesterday, the Bank of Canada left interest rates alone. On top of that, policymakers expressed the belief that the struggling Canadian economy would begin a rebound in the next quarter.
With an upbeat forecast from the Bank of Canada, and surging oil prices, it’s little surprise that the loonie has the upper hand today in Forex trading.
At 13:46 GMT USD/CAD is lower, dropping down to 1.2942 from the open at 1.3019. EUR/CAD is also dropping, falling to 1.4498 from the open at 1.4524. GBP/CAD is down as well, falling to 1.9002 from the open at 1.9134.
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