Loonie Gains Against European Currencies, Loses to Greenback

Canadian dollar is trading mixed today, gaining against the major European currencies, but heading lower against the US dollar.

Loonie is in an interesting position today. The Canadian dollar is heading higher against the euro and the UK pound today. The Canadian economy is still considered relatively strong, while the eurozone continues to flounder and wrestle with Greece. Additionally, the Bank of Canada is likely to make a move to raise rates before the Bank of England is done with its quantitative easing program. This is contributing to the loonie’s success against European currencies.

The Canadian dollar isn’t doing quite as well against the US dollar, though. The greenback is surging today, carrying all before it, on the news that the Fed might raise rates as early as June. The loonie is also taking a beating from the recent drops in oil prices. Canada relies heavily on oil for its economy, and as oil prices fall, so does the loonie. Oil is slightly higher today, but overall, the story has been one of oil weakness the last few months.

At 10:59 GMT USD/CAD is higher, moving up to 1.2691 from the open at 1.2689. EUR/CAD is down to 1.3416 from the open at 1.3574. GBP/CAD is down to 1.9106 from the open at 1.9122.

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