Loonie Surges Along With Oil

Canadian dollar is heading higher today, thanks to a surge in oil prices. Crude is on the rise after the Saudi strikes in Yemen, and that is helping the loonie against its major counterparts.

Loonie is heading higher against most of the major currencies today as oil prices surge. Saudi Arabian strikes into an unstable Yemen are threatening oil supply from the Middle East, and that has finally arrested the slide of crude prices. Indeed, oil prices are surging above $50 a barrel today. Saudi Arabia is leading a coalition of Persian Gulf states in strikes against Yemeni rebels who have destabilized the government.

Canadian dollar is doing especially well against its US dollar counterpart, as the US stock market takes a dive and commodities rise. Along with oil rising, global concerns are pushing gold higher as well. For commodity currencies like the loonie, now is the time to press an advantage. The loonie might decline again in time, but for the short-term, it is likely to find some good support.

At 10:55 GMT USD/CAD is down to 1.2440 from the open at 1.2520. EUR/CAD is also lower, falling to 1.3686 from the open at 1.3734. GBP/CAD is down to 1.8565 from the open at 1.8632. CAD/JPY is higher, gaining to 95.4820 from the open at 95.4440.

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