Canadian dollar continues to rally today, heading higher against its major counterparts. Even with slightly lower oil prices, the loonie is heading higher, continuing its rally from last week.
A rally is under way for the Canadian dollar today, continuing the gains made toward the end of last week. During the Asian session, the loonie has strengthened against its major counterparts. However, there are some expectations that the Canadian dollar will encounter resistance soon, especially as oil prices continue to struggle.
Overall, oil prices are higher now than they were a few weeks ago, but today’s performance has crude down. The good news for oil and the loonie is that oil has been holding above $50 a barrel the last few weeks, after reaching a 52-week low of $45.93 around the beginning of March. With the Canadian dollar’s dependence on oil prices, the overall improvement in the oil picture in the last few weeks has been helpful.
However, there is speculation that the loonie will soon run into resistance. Policy divergence with the United States and an improving picture in Europe are likely to help major counterparts.
At 10:31 GMT USD/CAD is down to 1.2166 from the open at 1.2191. EUR/CAD is down to 1.3182 from the open at 1.3245. GBP/CAD is down to 1.8412 from the open at 1.8502.
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