Loonie Gains Against European Counterparts

Canadian dollar is heading a little higher this week, gaining ground against European counterparts, thanks in large part to the latest trade surplus data. With the Canadian dollar looking for gains related to its economic recovery, and with Europe suffering from economic difficulties and geopolitical uncertainty, it’s no surprise the loonie is gaining.

The latest trade data from Canada showed a surplus of C$1.86 billion in the month of June. Canada is exporting at a record pace, thanks to the efforts made in 2013 to weaken the loonie.

This display of economic progress from Canada is helping the loonie against its European counterparts, even though it isn’t doing much against the greenback. Following today’s decisions from European central banks, the Canadian situation looks pretty good comparatively, and that is helping the loonie. Also helping the loonie is the fact that oil, even though it is below $100 a barrel, still retains a decent amount of strength.

Canada’s relative stability, as well as the fact that its economy hasn’t struggled as much to begin with, and its current improvements, are big helps to the loonie.

At 13:38 GMT EUR/CAD is down to 1.4599 from the open at 1.4609. GBP/CAD is down to 1.8389 from the open at 1.8397. USD/CAD is up to 1.0923 from the open at 1.0916.

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