Higher Oil Prices Aren’t Helping Loonie Much Today

Oil prices are higher today, but that isn’t helping the loonie much. Canadian dollar isn’t showing much improvement today as it loses ground to some of its major counterparts.

Oil prices are a little higher today, thanks in part to the fact that a meeting is coming in March to discuss a production freeze for oil. This includes countries inside and outside OPEC. The prospect of tighter production is buoying up oil prices. However, those higher oil prices aren’t translating to a better performance for the Canadian dollar against all its major counterparts.

Instead gaining ground against its rivals, loonie is struggling today. The Canadian currency is up against the euro today, but that has more to do with euro weakness than loonie strength. Some of the concern comes from the fact that, even though there might be production freezes coming, there is still a glut of oil in the markets, and prices are expected to remain somewhat low for an extended period of time.

At 15:20 GMT USD/CAD is heading higher, moving up to 1.3514 from the open at 1.3508. GBP/CAD is also moving higher, gaining ground to 1.8775 from the open at 1.8722. EUR/CAD is heading lower, dropping down to 1.4715 from the open at 1.4752.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *