Canadian Dollar Retains Strength

Loonie is retaining some of its recent strength in Forex trading, logging gains on the Burger King plan to buy Tim Hortons, as well as getting some help from expectations for positive economic data, due out tomorrow.

Canadian dollar is getting a boost from high expectations right now. While some believe that the loonie is overvalued, right now the currency is doing reasonably well against most of its major counterparts.

Loonie got a big boost yesterday, thanks in large part to the news that Burger King is planning to buy coffee and donut chain Tim Hortons. The deal will go down in Canadian currency, so many expect demand for loonies to rise on the international market.

Additionally, the Canadian dollar is gaining some strength from the hopes for good data tomorrow. Many currency traders and analysts expect Statistics Canada to release a GDP report for June that shows a solid increase. Expectations for the loonie are high.

Canadian dollar might not retain this strength, though. Risk appetite is likely to fade on news from Ukraine, and some think loonie is overvalued.

At 11:18 GMT USD/CAD is down to 1.0855 from the open at 1.0865. EUR/CAD is down to 1.4313 from the open at 1.4334. GBP/CAD is down to 1.8009 from the open at 1.8010.

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