Canadian dollar is heading lower today, dropping as negative sentiment grows throughout the markets. The main concern is what is happening in the eurozone. There are worries about when Spain will ask for aid, and how long the government will hold off as Spanish citizens protest against austerity measures.
Right now, there is a general feeling of risk aversion in the markets, and that means that the Canadian dollar is feeling the downward pressure. Loonie generally does well when there is risk appetite. And, since the Canadian dollar is considered a commodity currency, the fact that commodities are heading lower today isn’t helping. Canada is particularly tied to oil prices, and oil has lost a great deal of ground in the last week.
For now, that means that the loonie is down against the US dollar, and against the UK pound. However, the Canadian dollar is finding some strength against the euro. That isn’t terribly hard, though, since the euro is struggling on concerns about what’s next for Spain and the rest of the eurozone. Things are likely to remain a bit mixed for a while, at least until things calm down.
At 13:40 GMT USD/CAD is up to 0.9833 from the open at 0.9807. GBP/CAD is up to 1.5897 from the open at 1.5874. EUR/CAD is down to 1.2632 from the open at 1.2653.
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