Canadian Dollar Gains Ground Along With Oil

Canadian dollar is higher today, thanks in large part to the fact that oil prices are higher. Unrest in the Middle East might be providing some of the support for oil prices.

Loonie is heading higher today, thanks in large part to gains by oil prices. Oil is back above $31 per barrel, and that is providing a great deal of support for the Canadian dollar against its major counterparts.

Unrest in the Middle East, including bombings in Syria and Islamic State attacks on an oilfield in Libya are likely contributing. Additionally, production caps was agreed to between Saudi Arabia and Russia, which is also likely to help, although OPEC isn’t to the point of production cuts.

The Canadian dollar does remain vulnerable, however. Oil prices could easily crash again, and the Canadian economy looks shaky right now. Housing is still an issue, and a raft of recent data has some a little worried about what might be next for the loonie. It’s a long way to recovery, but for now the loonie is higher.

At 14:56 GMT USD/CAD is lower, dropping to 1.1021 from the open at 1.1121. EUR/CAD is down to 1.5088 from the open at 1.5310. GBP/CAD is down to 1.9332 from the open at 1.9641.

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