After gaining some ground earlier on oil prices, the Canadian dollar is mostly flat today. Trading is thin, and the loonie is looking for direction — much like other currencies.
US dollar took a dive after last nights article in the Wall Street Journal suggested that the Federal Reserve is likely to put off tapering its bond buying program. With the prospect of a weaker greenback, the loonie got a boost. Higher oil prices also helped the Canadian dollar, which relies on commodity prices for some of its support.
Right now, though, things have flattened a bit. Forex trading is thin right now, without a lot of major economic releases. Additionally, many Forex traders are in wait and see mode. Next week is a big week for announcements, with the Federal Reserve, Bank of England, and European Central Bank all set to make policy announcements.
So, the Canadian dollar has given up a lot of its gains against the US dollar, and is now trading flat. Loonie is looking for direction, but us unlikely to find it until sometime next week.
At 17:35 GMT USD/CAD is at the opening level of 1.0280. EUR/CAD is up to 1.3657 from the open at 1.3650. GBP/CAD is slight lower at 1.5819, down from the open at 1.5824.
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