Canadian dollar is getting a bit of a bump against its major counterparts today, thanks in large part to higher oil prices. With oil prices gaining again, that is helping the loonie, and should provide some support for the economy, although more swings are likely.
The story of the Canadian dollar the last few months has been tied to oil, and its swings in the market. Canada relies heavily on oil, and the recent market swings have impacted the loonie’s performance in Forex trading.
Right now, oil prices are on the rise again. Oil is solidly above $40 a barrel, and that is helping the Canadian dollar. However, even though oil is higher right now, there is the possibility that it will drop again. Production caps have been mostly agreed to and there is enough unrest that supply interruptions are a possibility from the Middle East, and that should help prices. However, US oil supply is still substantial and there are other factors that could lead to lower prices.
At 14:01 GMT USD/CAD is lower, dropping down to 1.2648 from the open at 1.2735. EUR/CAD is also down, heading to 1.4235 from the open at 1.4375. GBP/CAD is dropping as well, heading down to 1.8215 from the open at 1.8235.
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