Canadian dollar is regaining some of the ground it lost yesterday. Thanks to slightly higher oil prices and some profit taking, the loonie is higher against its major counterparts.
News that housing starts were softer than expected in Canada weighed on the loonie recently. There was a 14 per cent drop in starts between September and October. After the optimism that things were getting ready to pick up in Canada, the news weighed heavily on the loonie.
This is especially true after the struggles of oil recently. The Canadian economy depends so much on oil, and prices have been so low, that the loonie has struggled a great deal.
Today, though, the Canadian dollar is seeing some improvement. Loonie is higher today on profit taking, as well as on slightly higher oil prices. As Forex traders look for profits from other major currencies, and as the increased chance of a Fed rate hike in December impacts trading, the loonie is gaining a little breathing space. However, many think it will be short-lived and the Canadian dollar will weaken further.
At 13:15 GMT USD/CAD is down to 1.3261 from the open at 1.3277. EUR/CAD is down to 1.4200 from the open at 1.4280. GBP/CAD is down to 2.0053 from the open at 2.0066.
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