Canadian Dollar Pulls Back After Earlier Gains

Loonie is mostly lower right now, following earlier gains. The Canadian dollar saw some initial gains today on better than expected economic data, but many of those gains have disappeared following uncertainties moving forward, along with an end to a recent winning streak by oil.

Earlier, the Canadian dollar saw some gains, thanks to better expected economic data. The latest CPI data showed some modest increases month over month, although the year over year remains steady. Lately, oil prices have been seeing some gains, and that has been helpful to the loonie.
However, concerns are once again rising, and the Canadian dollar is giving up some of its earlier gains. Oil is down again. On top of that, there are concerns that the Bank of Canada will be forced to take action before they are ready. Inflation is barely above the target of 2%, but things could change with a still-hot housing market. There are worries that the rest of the economy isn’t ready for the tightening that might be needed to keep things under control. The loonie is
The loonie is mostly lower as a result, and showing its best performance against the pound, which is down for its own problems.
At 16:07 GMT USD/CAD is up to 1.3180 from the open at 1.3087. EUR/CAD is up to 1.4452 from the open at 1.4432. GBP/CAD is down to 1.7257 from the open at 1.7318.

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