Canadian dollar is trading mixed today, but there are some that feel that there is strength coming for the currency. Thanks to the Tim Horton’s deal, as well as the possibility of higher demand in Europe for energy from non-Russian sources, the loonie could see some improvements.
Loonie is struggling a little bit today against some of its major counterparts. This comes after a bit of a boost recently, though. Recent GDP figures exceeded expectations, providing reason to speculate that the Bank of Canada won’t need to keep rates low for too much longer.
On top of that, Canadian dollar got a bit of a boost last week from the announcement that chain Tim Horton’s will be bought out by Burger King, providing a wider distribution. For the future, though, many are looking to energy supplies.
With the European Union sanctions on Russia, there is a new need for energy, and Canada is poised to provide oil and natural gas. With the Ukraine situation remaining dire, there is a chance for Canada to take Russia’s place, and that could mean loonie strength in the future.
At 10:13 GMT USD/CAD is up to 1.0914 from the open at 1.0871. EUR/CAD is up to 1.4313 from the open at 1.4273. GBP/CAD is down to 1.8041 from the open at 1.8055.
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