Canadian dollar is heading a little higher today, struggling to regain some lost ground after hitting lows not seen since 2004. Loonie is a little higher today against most of its major counterparts, and hoping to eke out more gains. However, with global uncertainty weighing on high beta currencies, and with oil prices remaining low, there isn’t a lot of support for the Canadian dollar.
Yesterday, for the first time since 2004, the Canadian dollar closed below 75 cents against the US dollar. Loonie has been struggling lately, heading lower as global markets reel from recent news out of China and large stock market swings. Also weighing on the Canadian dollar has been dropping oil prices.
US stockpiles of oil have been growing in recent months, and that is driving down the cost of oil. Additionally, OPEC countries aren’t slowing production much. While some believe that the current state is a ploy by OPEC policymakers to encourage consumption of oil so that prices can rise later, the reality remains that there seems to be a glut of oil on the world market, and the low prices are hurting the Canadian economy and the loonie.
Today, though, the Canadian dollar seems to be trying to eke out some gains.
At 13:38 GMT USD/CAD is down to 1.3306 from the open at 1.3336. GBP/CAD is down to 2.0736 from the open at 2.0921. EUR/CAD is down to 1.5142 from the open at 1.5358.
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