Loonie is heading higher today, thanks to a jolt from Apple. AAPL earnings are helping market sentiment, as well as adding to a growing list of companies whose Quarter 1 earnings beat expectations. The good news is helping many high beta currencies, including the Canadian dollar.
Also helping sentiment and boosting the loonie is the reduced fear about what’s next for the eurozone. A German bond auction saw weak demand, and many are assuming that’s because investors aren’t looking for safe, low-yielding investments. In the search for better yields, investors are turning to higher beta currencies.
Canadian dollar is higher against the US dollar as safe haven demand fades. Additionally, loonie is up against the UK pound, which is taking a hit on the news that the British economy is moving into recession. Add higher oil prices to the mix, and the Canadian dollar has sufficient support for now.
at 13:46 GMT USD/CAD is lower at 0.9828, down from the open at 0.9882. GBP/CAD is down to 1.5847, which is lower than the open at 1.5935.
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