Loonie is slightly lower right now, following earlier gains. Earlier, the prospect of a better situation in Europe, as well as fiscal cliff talks in the United States, helped boost risk appetite. Additionally, the Canadian dollar received some support from the news that the International Monetary Fund is thinking about adding the loonie to its list of reserve currencies.
Earlier, the Canadian dollar showed strength on the latest news about a variety of subjects. Loonie has been performing relatively well since the financial crisis of 2008, and the strength of its economy and the currency has led the IMF to consider classifying the Canadian dollar as a reserve currency. Also, the loonie has been getting some help from the fact that risk appetite seems to have made an appearance earlier. Expectations of a deal for Greece, as well as the aversion of the fiscal cliff in the United States, are providing some confidence.
However, the situation isn’t quite so straightforward. Loonie is slipping a little bit right now as risk aversion makes a slight appearance. The Federal Reserve is expected to announce more easing later today, and France just lost its AAA rating from Moody’s.
At 14:11 GMT USD/CAD is a little higher at 0.9970, up from the open at 0.9963. GBP/CAD is up to 1.5874 from the open at 1.5849. EUR/CAD is up to 1.2760 from the open at 1.2736.
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