Canadian dollar is heading higher against the US dollar today, gaining as oil prices rise, and as optimism helps high beta currencies. Loonie is getting a boost from general risk appetite today, as well as being helped along by higher oil prices. Even a drop in Canadian manufacturing hasn’t been able to keep the loonie down.
In spite of disappointing economic data in Canada, the loonie is finding support on the Forex market. Statistics Canada is reporting that January saw a drop in manufacturing for January, led by the aerospace sector. Other recent economic data, including jobs reports, have been somewhat disappointing. However, nothing is pointing to a severe economic setback for Canada — yet.
For now, though, a lot of the focus is on US economic data. CPI data came in at 0.4 percent, rather than the predicted 0.5 percent, for February. However, the growth was still there, and still an increase over the 0.2 percent seen in January. As one of Canada’s biggest trading partners, the economic situation in the United States matters to the loonie. Also helping support the Canadian dollar are higher oil prices. The loonie is a commodity currency closely related to oil, and higher oil helps provide support.
At 13:46 GMT USD/CAD is down to 0.9908 from the open at 0.9920. GBP/CAD is higher, though, moving up to 1.5699 from the open at 1.5584.
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