Loonie Finds a Little Support in Forex Trading

Canadian dollar is getting a little help today in currency trading on the FX market, thanks to better economic data. The embattled loonie is making some progress against some of its major counterparts, thanks to better GDP data and expectations of a good manufacturing report. However, these gains aren’t expected to last as oil prices continue to drop.

The economic news out of Canada has been generally good for the last couple of days. The GDP data was positive, and many are expecting today’s release of the RBC Purchasing Managers’ Index will prove helpful as well. With all of this, the loonie is gaining ground against some of its counterparts, particularly the euro and the US dollar.

Even though things are looking pretty good for the Canadian economy right now, though, it might not remain so for long. Concerns about the situation with oil prices are likely to continue to weigh. With OPEC willing to let oil prices fall to the point that American oil companies are no longer profitable, the loonie is likely to lose more ground.

At 11:45 GMT USD/CAD is lower, dropping to 1.1410 from the open at 1.1421. EUR/CAD is down to 1.4224 from the open at 1.4244. GBP/CAD is up to 1.7933 from the open at 1.7879.

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