Oil is rallying, and that is helping the Canadian dollar in Forex trading today. Loonie is mostly higher against its major counterparts.
Oil continues to rally today, moving above $61 per barrel as concerns about global unrest, as well as forecasts for increased demand, provide support. The fighting still going on in Yemen is threatening supply out of the Arabian peninsula, and that is providing some support for oil.
Another support for oil is the latest forecast from OPEC. The cartel predicts increased demand for oil in 2015, and, coupled with concerns about supply disruption, this is helping move the price of oil higher.
Since the Canadian economy depends heavily on oil for support, it is little surprise that the loonie is higher today. Indeed, the Canadian dollar is higher almost across the board against its major counterparts on the news. There is likely to be some weakness in the loonie moving forward, though, since employment is still weak and policy divergence with the United States is still in place.
At 10:28 GMT USD/CAD is lower, falling to 1.1977 from the open at 1.2019. EUR/CAD is also lower, dropping to 1.3447 from the open at 1.3477. GBP/CAD is down as well, falling to 1.8764 from the open at 1.8836.
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