Canadian dollar is pulling back today, heading lower as risk appetite fades away, and as oil prices drop. Commodity currencies are struggling right now on risk aversion and a higher US dollar. It’s not surprise that the loonie is experiencing difficulties as well.
Risk aversion seems to be the driving force today. Thanks to the latest news out of the eurozone, many risker currencies are lower today. Indeed, the news that European Union leaders still can’t seem to agree on any sort of solution for Greek debt is weighing on all financial markets and risk currencies, including the Canadian dollar.
Loonie is also under pressure from the fact that oil prices are pulling back again. Oil prices are lower as the US dollar gains and commodities retreat. Also contributing to lower oil prices is the fact that Iran has postponed its decision to ban all exports to Europe. There are still concerns about oil supply due to Iran’s threats, but they are lessened for now as Iran holds off on voting to ban exports.
With oil prices a bit lower, and with risk aversion a reality, it is little surprise that the Canadian dollar is lower.
At 15:54 GMT USD/CAD is higher at 1.0048, up from the open at 1.0013. CAD/JPY is lower at 75.99 down from the open at 76.54.
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