The Canadian dollar continues to weaken in Forex trading, but not everyone is upset about that. There are some who think that the weaker loonie could be a help to the Canadian economy.
Right now, there are expectations that the Canadian dollar will remain weak for the near to medium term. Indeed, some analysts believe that the loonie will hit 90 cents against the greenback by the end of the year. Ever since the financial crisis, the Canadian dollar has been trading near parity with the US dollar, but this trend might be changing.
The Canadian economy has been slowing down over the last year or so, and the Bank of Canada has had to cut rates. There is still the housing bubble to worry about, and evidence of employment issues is starting to become more worrisome. With all of this, there is less confidence in the loonie, and more in the greenback.
But that doesn’t have many upset. The weaker loonie has prompted more investment in Canada. Tourism and retail are up as cross-border shopping and traveling goes south to north, instead of north to south, as was the case with loonie strength.
At 14:47 GMT USD/CAD is up to 1.0955 from the open at 1.0925. EUR/CAD is down to 1.4872 from the open at 1.4881. GBP/CAD is up to 1.8008 from the open at 1.7870.
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