Canadian dollar is a little bit higher today, thanks in part to oil prices. Crude oil is on the rise again, and yesterday’s announcement of the merger between Shell and BG Group is having its effect as well.
Oil prices are back above $50 a barrel today, and that is helping the loonie in Forex trading. Canadian dollar is getting a boost from higher oil prices, although prices are nowhere near what they were a few months ago. There is some speculation that oil will have to rise at some point in the near future, though. There is a great deal of unrest in the Middle East right now, with the fighting in Yemen, and continued problems with the so-called Islamic State in Syria and Iraq.
If the issues in the Middle East do disrupt supply, prices could rise quickly, and the Canadian dollar could benefit as more demand is made for Canadian oil. For now, though, the loonie remains cautiously optimistic. There is little reason for the Canadian dollar to lose much ground the remainder of the month, especially since the Federal Reserve remains unlikely to raise interest rates in the immediate future.
At 12:16 GMT USD/CAD is down to 1.2523 from the open at 1.2546. EUR/CAD is down to 1.3493 from the open at 1.3526. GBP/CAD is down to 1.8566 from the open at 1.8654.
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