Loonie is losing ground against its major counterparts today, thanks in large part to disappointment over the latest US employment data. Earlier, the Canadian dollar was fluctuating against its counterparts, but it appears that the loonie is moving solidly lower now.
The latest initial unemployment claims in the United States has put a bit of a damper on the loonie’s gains. The Canadian dollar often does well when there are indications that its largest trading partner, the United States, is economically strong. However, the latest labor data out of the United States represents something of a setback.
Even though Canadian data issued earlier in the week provided some pleasant surprises, the loonie is struggling. Additionally, in the background, is the sneaking suspicion that there is a housing bubble about to burst in Canada. All of this is weighing against the Canadian dollar, and the fact that oil prices are paring their earlier gains isn’t helping, either.
For now the loonie is likely to continue to show relative weakness against its major counterparts.
At 14:47 GMT USD/CAD is up to 1.0169 from the open at 1.0164. EUR/CAD is also higher, rising to 1.3046 from the open at 1.2988. GBP/CAD is up to 1.5418 from the open at 1.5376.
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