Loonie Heads Higher as Oil Prices Surge

Canadian dollar is heading higher today, gaining ground as oil prices surge. The chance for oil prices is producing gains for the loonie against its major counterparts.

For several weeks now, the Canadian dollar has been struggling in Forex trading. Loonie is tied to oil prices, since oil is a major part of the Canadian economy. OPEC nations are refusing to cut production, and the United States has also been producing more oil. With all the extra oil, prices have been low, and that’s been a strain on the Canadian dollar.

However, today oil prices are surging. Oil is heading higher and the loonie is reaping the benefits. Canadian dollar is gaining against the US dollar, euro, and the UK pound today on the strength of higher oil prices and on a surge in the stock market as investors mark the start of a two-day Fed meeting.

Loonie isn’t out of the woods yet, though. Oil prices could easily drop again, and the Bank of Canada isn’t above further easing in order to help keep the economy going.

At 14:55 GMT USD/CAD is down to 1.3711 from the open at 1.3737. EUR/CAD is down to 1.5023 from the open at 1.5092. GBP/CAD is down to 2.0760 from the open at 2.0792.

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