Canadian dollar is falling behind today, losing ground as the US economy begins to outpace Canada’s Economy. With data favoring the United States, Canada is falling behind, and that is reflected in the loonie’s performance in trading.
The Canadian dollar hit a low not seen for 20 months ahead of the release of US manufacturing data. With manufacturing and construction data showing improvement in the United States, it offers a sharp contrast to Canadian data, which seems to indicate a struggle.
On top of that, there are concerns that the Canadian economy is about to suffer the effects of a housing bubble. Also impacting sentiment in Canada is the growing levels of household debt. With the reality of a debt crisis a possibility, along with signs that the Canadian economy is lagging a bit, it is little surprise that the loonie is falling to the US dollar — and losing ground to other major currencies.
Even though crude oil prices are a little higher today, Canadian dollar is finding no support. Concerns that the outlook for oil prices is dimming are weighing, along with everything else.
At 13:46 GMT USD/CAD is up to 1.0557 from the open at 1.0497. EUR/CAD is up to 1.3726 from the open at 1.3713. GBP/CAD is up to 1.5992 from the open at 1.5973.
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