Risk Appetite Helps Canadian Dollar

Canadian dollar is getting a bit of help today, thanks largely to the risk appetite brought on by European confidence. Risk assets are in demand today, and that is providing some support to the loonie against the greenback.

Canadian dollar is rising against its US counterpart today as risk appetite reduces the interest in safe haven and as Forex traders come out looking for yield.

The latest news from the eurozone, showing improving sentiment, is fueling a risk rally across a number of asset classes today. Stocks and commodities are on the rise, and riskier currencies are also getting a bit of a boost. The Canadian dollar is included in this rally.

Loonie is also getting a little help from comments made by Jeffrey Lacker, the President of the Federal Reserve Bank of Richmond. He said that sluggish economic growth is to be expected in the United States, and that is prompting some to think that they were a little too quick to hail the end of stimulus tapering.

On top of that, there are expectations that the Canadian economy will show growth in the report expected to be released tomorrow. Higher oil prices are also helping the loonie.

At 13:55 GMT USD/CAD is down to 1.0454 from the open at 1.0472. EUR/CAD is up to 1.3643 from the open at 1.3623. GBP/CAD is down to 1.5968 from the open at 1.6033.

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