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Canadian Dollar Finds Some Support

November 8, 2012 at 14:00 by Miranda Marquit

Canadian 100-dollar billsCanadian dollar is fining some support today as risk appetite makes a cautious reappearance in the markets. Loonie is inching higher against many other major currencies, thanks to a little more optimism, and some strength.

Yesterday, the Canadian dollar closed lower as risk assets experienced a rout. Concerns about whether or not Republicans and Democrats in the US Congress can come together to avoid a fiscal cliff had all of the markets reeling. Worries about the eurozone weren’t helping, either.

Today, though, the Canadian dollar is heading a little bit higher against some of the other currencies. One of the helpful items was that Greece passed the austerity bill that will allow for more bailout funds. That relief is almost palpable in the markets, and resulting in a bit of risk appetite today.

Loonie is also seeing some some success as oil prices move back above the $85 a barrel mark. Oil prices have a great impact on the Canadian dollar, and they are helping right now. Also helping is the assumption that markets will begin trying to dig out of yesterday’s huge hole. For now, that means a little bit of help for the loonie.

At 13:57 GMT USD/CAD is down to 0.9963 from the open at 0.9967. EUR/CAD is down to 1.2700 from the open at 1.2713. GBP/CAD is a little higher, up to 1.5932 from the open at 1.2926.

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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