Canadian dollar is getting a boost today as Ben Bernanke indicates that more stimulus is coming for the US economy. With the news that Fed tapering will likely be later rather than sooner, the loonie is seeing some sharp improvement against the greenback.
Loonie reached its highest level against the greenback in three weeks following remarks from Federal Reserve Chair Ben Bernanke. Bernanke indicated that the US economy isn’t strong enough to continue its recovery without stimulus, and that has triggered a dollar sell off.
The Canadian dollar has benefited from this sell off. Also helping to support the loonie is the recent and unexpectedly good news on the Canadian economy. Home prices have risen, according to Statistics Canada, and there are other signs that the Canadian economy is holding its own.
Between the economic news, and the recently soaring oil prices, there is a lot to support the Canadian dollar against the US dollar. The fact that the tapering of asset purchases is unlikely to start anytime soon is just another help for the loonie.
At 13:31 GMT USD/CAD is heading lower, down to 1.0416 from the open at 1.0466. EUR/CAD is higher, though, moving up to 1.3585 from the open at 1.3582. GBP/CAD is also higher, up to 1.5728 from the open at 1.5716.
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