Canadian Dollar Struggles after Latest Economic Data

  January 22nd, 2013 at 13:51, Miranda Marquit

Canadian 100-dollar billsCanadian dollar is struggling today, thanks to the latest economic data. November retail sales were disappointing. Additionally, it’s not helping that oil prices can’t seem to find some solid support.

Risk appetite is in short supply today, as currency traders look to profit taking following the Bank of Japan announcement that it would put off open-ended asset purchases until 2014. This sentiment is weighing a little bit on the Canadian dollar, but a great deal of the loonie’s difficulties are coming from the latest round of economic data.

The Bank of Canada is expected to keep interest rates at a low one per cent. Additionally, the latest report from Statistics Canada puts November retail sales rising only 0.2 per cent, when many economists thought to see that they would gain more than that. Oil prices are only very slightly higher, and they have been struggling this morning. Loonie is a commodity currency that is especially sensitive to oil prices. With oil prices having difficulty, the Canadian dollar often struggles as well.

For now, there isn’t a lot to support the loonie, so it is mostly lower against its major counterparts.

At 13:47 GMT USD/CAD is up to 0.9931 from the open at 0.9929. GBP/CAD is up to 1.5756 from the open at 1.5718. CAD/JPY is down to 89.44 from the open at 90.40. EUR/CAD is up to 1.3216 from the open at 1.3213.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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