Upbeat Forecast, Higher Oil Prices Help Canadian Dollar

Canadian dollar is getting a little help today, thanks to a recent upbeat forecast from the Bank of Canada, and thanks to improving oil prices. Loonie is mostly higher today, and there are hopes that the currency can maintain some of its recent advances going forward.

The Bank of Canada recently held its interest rate unchanged, helping fuel speculation that the economy is on the right track. Policymakers also made it a point to talk about a coming economic rebound. As part of the announcement, Bank of Canada officials downplayed the impact of the Brexit. Instead, there is focus on the improving situation in the United States, which is Canada’s biggest trading partner.

Also helping the loonie in Forex trading is the fact that oil prices are on the rise again. Higher oil is expected to help the Canadian economy, and that is boosting the loonie as the possibility of a rate cut by the end of 2016 dwindles. Officials are cautiously optimistic, and that is proving a net positive for the Canadian dollar in Forex trading today.

At 10:38 GMT USD/CAD is lower, dropping to 1.2933 from the open at 1.2977. EUR/CAD is down to 1.4356 from the open at 1.4391. GBP/CAD is up to 1.7127 from the open at 1.7061.

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