Canadian dollar is falling today, dropping on concerns about the US government shutdown possibility, and on oil prices. There’s a lot weighing on the Canadian economy right now, and that is affecting the loonie for the worse.
Concerns that the Republican-controlled House of Representatives will force a government shutdown over the Patient Protection and Affordable Care Act are affecting the Canadian economy. A shutdown would have an impact on the US economy, and Forex traders know that would impact Canada, since the United States is Canada’s main trading partner.
Also weighing on the loonie is the fact that oil prices are lower. Canada’s economy relies heavily on its oil exports, and with oil prices falling as concerns about the Middle East fade and as worries about what’s next for the US economy mount, the loonie is undermined. In general, risk appetite is off today, and commodity currencies like the Canadian dollar are struggling.
There’s not a lot else that can be done other than wait, and if things resolve themselves, the loonie could find support as things pick up again.
At 14:17 GMT USD/CAD is up to 1.0315 from the open by 1.0310. EUR/CAD is also higher, moving up to 1.3974 from the open at 1.3905. GBP/CAD is up to 1.6621 from the open at 1.6538.
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