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Loonie Struggles against other Majors

October 22, 2012 at 13:46 by Miranda Marquit

A fan of 100-dollar notesCanadian dollar is struggling a bit today, heading lower against other major currencies. Loonie is struggling a bit on uncertainty about what the Bank of Canada will decide, as well as being affected by slipping oil prices.

Uncertainty about what’s next for the Bank of Canada is weighing on the loonie a little bit today. Many expect the central bank to hold rates stead at 1 per cent. However, many Forex traders are looking for clues of a rate hike. However, with global economic concerns being what they are, there are some worries that the policy announcement following the rate announcement won’t be as favorable as expected.

Also adding its bit to the situation is the fact that Canada’s government has rejected a bid by Malaysian owned Petronas to buy Progress Energy Resources. Forex traders and investors are still working out how they feel about this move, and that is holding the Canadian dollar back a little bit.

It’s also not helping that oil prices have slipped below $90 a barrel. Loonie derives a great deal of support from oil prices, and they are dropping, in spite of unrest in the Middle East. Worries about global demand are once again rising.

At 13:46 GMT USD/CAD is up to 0.9948 from the open at 0.9943. EUR/CAD is up to 1.2980 from the open at 1.2949. GBP/CAD is up to 1.5954 from the open at 1.5907.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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