Canadian dollar is hoping to hold on to some of yesterday’s gains, and with thin trading and concerns about the geopolitical situation, that’s a possibility.
Yesterday, the loonie closed higher against most of its major counterparts, thanks in large part to the fact that this week is a thin one for data, and thanks to geopolitical tensions that have many looking for non-European investments right now. Concerns that the situation in Ukraine will lead to greater sanctions on Russia are worrying some because the impact of industry-wide sanctions could bleed over into the eurozone economy.
The Canadian dollar also got some help yesterday from higher commodities. Today, though, oil and gold are heading a little lower, and so won’t be much help to the loonie. For now, the loonie is managing to hold on to tenuous gains, but it may not last. Many expect Statistics Canada to release a favorable retail sales report tomorrow, but any indication that things aren’t going as well as expected could send the Canadian dollar lower.
At 13:18 GMT USD/CAD is a little bit lower, dropping to 1.0735 from the open at 1.0739. EUR/CAD is struggling a bit more, falling to 1.4477 from the open at 1.4523. GBP/CAD is only a little lower, dropping to 1.8329 from the open at 1.8338.
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