Canadian Dollar Heads Lower as Commodities Struggle
Canadian dollar is heading lower as commodities struggle today. Oil prices are having an especial effect on the loonie today, as they are very connected to the performance of the Canadian currency. Also weighing on the Canadian dollar is the disappointing employment news reported by the government.
Canadian dollar is struggling against the US dollar as worries about the global economy, as well as specific concerns in Canada, weigh on the loonie. The loonie is sensitive to commodity prices, and struggling commodities translate into difficulties for the Canadian dollar. As its major export, oil is especially influential when it comes to forex trading with the Canadian dollar. A drop in oil prices has been pressuring the loonie.
Also causing problems for the Canadian dollar is the disappointing jobs data released during the Easter holiday. Instead of gaining 250,000 jobs in March, the Canadian economy only added 120,000. The news has disappointed analysts and only added to the loonie’s troubles.
In general, risk aversion is high today. Concerns about the situation in the eurozone, as well as Chinese inflation, are all contributing to a feeling of uncertainty in the markets. High beta currencies, and commodity currencies, like the loonie, are lower as a result.
At 14:28 GMT USD/CAD is higher at 0.9983, up from the open at 0.9974. GBP/CAD is a little lower at 1.5844, down from the open at 1.5851.
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Earlier News About the Canadian Dollar:
- Canadian Dollar Slides on US Payrolls & European Debt Problems (2012-04-07)
- Canada's Employment Improves Beyond Expectations, Loonie Profits (2012-04-05)
- Risk Aversion Sends Canadian Dollar Lower (2012-04-04)
- USD/CAD Falls as Global Economy on Track to Recovery (2012-04-03)
- USD/CAD Drops as Canada's Budget Deficit Expected to Shrink (2012-03-29)