Loonie is getting a bit of a boost today, thanks to better news. However, the gains are relatively small, and may not last, since pessimism is once again coming in to replace cautious optimism.
After the Cisco report, Canadian dollar got a bit of a boost. The surprising earnings news helped markets, since the company is considered a bellwether. There are hopes that US companies are ready to start hiring again. Additionally, the idea that the Federal Reserve might set the Fed Funds Rate using a method other than calendar dates is also helping the situation.
However, the optimism is proving relatively short-lived. Already, US stocks are slipping a bit, and the Canadian dollar is paring some of its earlier gains. The loonie is also struggling as oil prices remain lower, and there is little support for higher oil prices right now.
For now, Canadian dollar has the upper hand thanks to general risk appetite. However, there are still plenty of risk-off factors to consider, from Greece in the eurozone to the fight over how to avoid going over a fiscal cliff in the United States.
At 15:08 GMT USD/CAD is down to 1.0014 from the open at 1.0021. GBP/CAD is down to 1.5895 from the open at 1.5905. EUR/CAD is a little higher at 1.2758, up from the open at 1.2731.
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