Canadian dollar is heading lower today as uncertainty prompts risk aversion in the Forex market. Forex traders are concerned right now about risk, thanks to all of the uncertainty about the global economy, oil prices, the eurozone, and the outcome of the US Presidential Election.
There is a lot of uncertainty to be had right now, and high beta currencies like the loonie are heading lower as a result. Right now, one of the big factors is the situation in the eurozone. Once again, Greece is causing problems. There is a great deal of uncertainty surrounding the upcoming parliamentary vote on the latest round of austerity measures that would allow Greece to take advantage of an ECB bailout.
The US Presidential Election is also having an effect on risk appetite today and influencing the Canadian dollar. It’s a close race, and the uncertainty over who will win is weighing on the loonie.
Generally low oil prices, thanks to low demand, aren’t helping, either. Canadian dollar is a commodity currency, and relies heavily on oil for support. While oil prices are inching a little higher in today’s session, the recent drop still has the loonie reeling a bit.
At 14:39 GMT USD/CAD is down to 0.9974 from the open at 0.9958. GBP/CAD is down to 1.5922 from the open at 1.5944.
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