Canadian dollar is struggling again, facing difficulty for a second day. Yesterday, the loonie struggled against its major counterparts, and the same is happening against today. Mostly, it has to do with expectations of the Federal Reserve taper.
With speculation that the Federal Reserve will decide to begin tapering its asset purchase program very soon, the US dollar is getting a bit of a boost. The quantitative easing has been depressing the greenback against the loonie, but with the asset purchases being tapered soon, there is now some support for the Canadian dollar.
The loonie has been working to pare its losses against the greenback today following a disappointing retail sales data report out of the United States. Canada’s own economic data has been interesting as well. Mortgage debt is on the rise in Canada, with Statistics Canada reporting that second quarter mortgage debt rose to 163.4 per cent of disposable income, as compared with the first quarter’s 162.1 per cent. The news indicates that there is still movement in Canada’s economy.
It’s been an interesting ride for the Canadian dollar, and it is likely to remain so.
At 13:49 GMT USD/CAD is up to 1.0337 from the open at 1.0325. GBP/CAD is up to 1.6379 from the open at 1.6317. EUR/CAD is down to 1.3709 from the open at 1.3730.
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