Canadian dollar is mostly lower again today, thanks to the slide in oil prices. The loonie is struggling as oil, once again, falls away from the $60 a barrel mark.
The Canadian economy is very dependent on oil prices, and the fact that oil is falling against isn’t helping the loonie today. Oil is down more than $2 per barrel on the day, and is likely to continue to fall in the near term.
There had been some hopes that continued unrest in the Middle East would help prices as supply contracted, but those supply problems haven’t materialized and oil prices remain relatively low.
Loonie is mostly lower as a result. The only major currency that the Canadian dollar is having success against right now is the euro, and that’s not a very difficult feat, since there is fundamental weakness in the 19-nation currency as the ECB accelerates its quantitative easing program.
Things could be worse in Canada, though. The housing market hasn’t crashed and the Bank of Canada might be considering a rate hike later if the economy improves. So, even though loonie is struggling now, things could even out later.
At 10:11 GMT USD/CAD is up to 1.2235 from the 1.2232. EUR/CAD is down to 1.3596 from the open at 1.3639. GBP/CAD is up to 1.8992 from the open at 1.8977.
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