Canadian dollar is heading much lower against most of its major counterparts, thanks in large part to the continuing drop in oil prices.
The Canadian dollar is supported in large part by oil prices that help keep the Canadian economy growing. The support of oil prices is an important part of everything from jobs to home prices in Canada. As a result, as oil prices have continued to drop, the loonie is struggling, especially against the US dollar.
Right now, the loonie is at its lowest level in more than eleven years as oil prices move solidly below $40 a barrel. A lot of the price drop has to do with continued production from OPEC countries, even though demand doesn’t keep up. The Saudis, who control OPEC to a large degree, might be facing a revolt, however. Many OPEC nations are ready to cut production in order to help stabilize oil prices, rather than continue to let a glut of oil into the world market.
At 15:18 GMT Crude Oil is at $38.30 per barrel, down $1.68 from its opening price. USD/CAD is higher, gaining to 1.3502 from the open at 1.3371. EUR/CAD is also higher, moving up to 1.4606 from the open at 1.4535. GBP/CAD is gaining ground as well, moving up to 2.0351 from the open at 2.0198.
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