Loonie Gets Boost from Appearance of Risk Appetite
Loonie is heading higher against the greenback today, gaining as risk appetite makes an appearance. Canadian dollar is also finding support from commodities today.
Today, the ECB announced that it is going to hold the line on interest rates for now, and ECB President Mario Draghi said that the bond buying program it has implemented has been instrumental in easing tensions. This has prompted some risk appetite in the markets, supporting high beta currencies against the US dollar.
The Canadian dollar is one of the currencies gaining ground against the greenback. Even though loonie is down against European currencies, it is gaining against the dollar. Canadian dollar is also finding some support from commodities. As a commodity currency, the loonie tends to do well when commodities are on the rise. Loonie is especially sensitive to movements in oil prices.
For now, risk appetite appears to be helping the Canadian dollar, and other currencies, against the US dollar. However, the situation remains volatile, and things could change quickly.
At 12:47 GMT USD/CAD is lower, heading down to 0.9864 from the open at 0.9875. EUR/CAD is higher at 1.2797, gaining from the open at 1.2751. Also higher is GBP/CAD, which is up to 1.5912 from the open at 1.5883.
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Earlier News About the Canadian Dollar:
- Higher Commodity Prices Lead to Gains of Loonie (2012-10-01)
- Canadian Dollar Loses Ground against the US Dollar (2012-09-28)
- Canadian Dollar is Down as Negative Sentiment Grows (2012-09-26)
- Canadian Dollar Inches Higher against US Dollar (2012-09-21)
- Canadian Dollar Struggles to Hold Ground against US Dollar (2012-09-18)