The latest home sales data is weighing on the Canadian dollar right now, contributing to its losses right now. Earlier, the loonie had been gaining ground on the prospect of continued stimulus in the United States, but there is enough doubt about the Canadian economy moving forward, and enough concern about the US economy that the loonie is heading lower.
A combination of factors is sending the Canadian dollar lower against most of its major counterparts today. On the one hand, home sales data in Canada has been disappointing. Statistics Canada reports that existing home sales dropped in October, following higher numbers in September.
Concerns about a housing bubble have been an undercurrent of the Canadian economy for months now, and this doesn’t help matters. Worries about the Canadian economy continue, and the loonie is lower.
Also weighing on the Canadian dollar is the latest data out of the United States. Lower production out of Canada’s biggest trading partner aren’t helping the situation much. Also not helping is the continued struggle by oil prices, which represent a big support to the loonie.
At 15:20 GMT USD/CAD is up to 1.0477 from the open at 1.0468. EUR/CAD is up to 1.4114 from the open at 1.4088. GBP/CAD is up to 1.6877 from the open at 1.6814.
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