Canadian dollar is pulling back a little bit after gaining earlier. Loonie was higher earlier as economic optimism returned to Canada, and a lowered risk of interest rate cuts. However, after seeing some gains, the Canadian dollar is pulling back as risk aversion returns to markets and as traders take some profits.
Against the US dollar, the Canadian dollar has been enjoying a bit of a run. Earlier today, the loonie looked as though it would log gains for a fifth straight day against the greenback. Now, though, the Canadian dollar has fallen back a bit. The loonie is lower against its major counterparts right now, in spite of earlier gains.
Gains seen earlier were largely a product of better economic data. The latest news indicates that the economy grew 0.2 per cent in November, representing the fifth month over month improvement. The International Monetary Fund also revised its forecast for 2014, predicting that the Canadian economy will grow by 2.2 per cent this year — which is better than the 1.7 per cent forecast for the United States. Improving oil prices in recent weeks have also helped.
However, today’s gains are being erased as profit taking and consolidation send loonie lower.
At 16:26 GMT USD/CAD is up to 1.1097 from the open at 1.1082. EUR/CAD is up to 1.5020 from the open at 1.4975.
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