Speculators are keeping the loonie mostly lower again today. Some analysts think that these speculators are being stubborn, and that the Canadian dollar has more upside potential than is being shown. For now, though, the loonie continues to struggle.
Canadian dollar is down against most of its major counterparts, with the main exception of the pound. While loonie weakness is to be expected at some point, in general, due to policy divergence and Bank of Canada decisions, the reality is that the Canadian economy has held up reasonably well, and some of the weakness is overblown right now.
Additionally, oil prices, which usually support the Canadian dollar, continue to climb. Renewed concerns about what’s happening in the Middle East, and how that will affect global oil supply, are pushing oil prices a bit higher, above the $106 mark.
With all of this, the loonie should be performing a bit better than it is. Analysts think that there are some speculators, waiting for a crash in the Canadian dollar, who stubbornly refuse to see that the currency is oversold for now.
At 12:24 GMT USD/CAD is higher, gaining to 1.0869 from the open at 1.0863. EUR/CAD is also higher, moving up to 1.4744 from the open at 1.4714. GBP/CAD is lower, dropping to 1.8420 from the open at 1.8426.
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