Canadian dollar is lower today, as oil prices resume their drop. North American stock indexes are also lower, which is weighing on the loonie as well. With the Canadian economy struggling a little bit because of oil, it’s little surprise that the loonie continues to exhibit weakness against its major counterparts.
Canadian dollar is down against its major counterparts today as oil prices drop again. After seeing some games in recent weeks, oil is again moving down. Also weighing on the loonie is the fact that North American stocks are struggling today.
This comes on the heels of talk that the Federal Reserve might raise interest rates as early as April. Many analysts and traders had accepted that the Fed would not raise rates until June. This new development is weighing on stocks and it continues to illustrate the policy divergence between Canada and the United States.
The newly instated Liberal government just released its budget, and it will take a few months to see how things shake out. But for now, with the Canadian economy still very dependent on oil prices, loonie weakness is likely to continue.
At 16:39 GMT USD/CAD is up to 1.3275 from the open at 1.3204. EUR/CAD is up to 1.4815 from the open at 1.4765. GBP/CAD is up to 1.8767 from the open at 1.8640.
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