Canadian dollar is gaining strength for the first time in days as some of the fear over the eurozone dissipates. Loonie has been struggling, in spite of relatively sound fundamentals, on sentiment related to the eurozone.
Today, though, some of the fear related to the eurozone is easing as the news circulates that the ECB has bought more Italian bonds in an effort to help keep the bond yield down. Additionally, demand for
Also helping the Canadian dollar today has been news out of the US. Jobless claims have dropped, as have inventories of homes for sale. This news is providing some indication that the US economy might be livening up a bit, and heading for recovery. The news is helping the loonie, as are the oil prices that remain around the $100 a barrel mark.
For now, there is plenty to support the Canadian dollar on the Forex market. However, things could change quickly — especially fears about the eurozone persist.
At 15:39 GMT USD/CAD is lower at 1.0225, down from the open at 1.0245. GBP/CAD is a little higher at 1.6145, up from the open at 1.6116. EUR/CAD is also moving a little higher, at 1.3832, up from the open at 1.3775.
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