Canadian dollar is surging against its European counterparts today, heading higher as the latest news on the economy helps the loonie. However, the Canadian dollar has fallen against the US dollar as uncertainty returns to the markets.
Once again, it’s a time of confusion for Forex traders. Earlier, the Canadian dollar struggled, but the latest news from Statistics Canada, showing that consumer prices rose 1.2 per cent in February, is helping the loonie against its European counterparts.
Canadian dollar was also higher against the US dollar earlier, but that was before concern about the eurozone once again seized Forex traders and investors. With the details of the Cyprus deal coming out, and with Italy back in the news, concerns about whether or not the eurozone can handle the problems in the periphery are rising.
With risk appetite fading, high beta currencies like the loonie are down against the US dollar. (Lower oil prices also weigh against the Canadian dollar against the US dollar.) However, with CPI indicating that the Canadian economy isn’t in too bad of shape, loonie is seeing gains against European currencies with struggling economies.
At 14:18 GMT USD/CAD is up to 1.0174 from the open at 1.0164. EUR/CAD is down to 1.2985 from the open at 1.3066. GBP/CAD is also lower, dropping to 1.5371 from the open at 1.5407.
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