Loonie Remains Down Against Greenback

Loonie continues to fall against the greenback, even though oil is a little bit higher today. The Canadian dollar is doing better against European currencies, though.

Canadian dollar continues to struggle in Forex trading as oil prices fight to stabilize. Saudi Arabia’s King Abdullah recently passed away, with the succession moving to his half brother, King Salman. The new king, and the new crown prince, are 79 and 69, respectively. Oil prices received a bit of a boost on the news, since there were concerns that a troubled succession could interrupt oil production.

However, things seem to be going smoothly in Saudi Arabia. Oil prices are a little higher, but they don’t seem to be impacting the loonie that much. The Canadian currency continues to lose ground to the US currency with the rumors swirling around the Bank of Canada and interest rate cuts. However, thanks to a great deal of risk aversion and concern about what’s happening in Europe, the Canadian dollar is gaining against both the euro and the UK pound.

At 11:32 GMT the price of crude oil (WTI) is up to 46.85, a gain of 0.54 from the open. USD/CAD is up to 1.2418 from the open at 1.2404. EUR/CAD is down to 1.3945 from the open at 1.4093. GBP/CAD is down to 1.8612 from the open at 1.8615.

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