Economic Concerns Continue to Weigh on Loonie

  February 20th, 2013 at 15:53

Sir Robert Borden on 100-dollar billCanadian dollar is at its lowest level in nearly seven months against the US dollar as economic concerns continue to weigh. Oil prices are fluctuating and it looks as though retail sales will show a decline when the data is released on Friday.

Retail sales data is expected to be released on Friday the 22, and there are concerns that the report will show a decline. This is not the only problem facing the Canadian economy, either. The job market has been a source of struggle recently for Canada, and there have been other signs of slowing recently. After bearing up remarkably well in the aftermath of the 2008 financial crisis, the Canadian economy is finally showing signs of slowing down.

Also not helping the situation is the fact that oil prices have been fluctuating. Oil prices are a little bit lower today, and they haven’t shown a lot of convincing strength recently. Oil is Canada’s main export, and the loonie derives support from better oil prices.

For now, economic concerns continue to weigh the loonie down, sending it lower against most of its counterparts.

At 15:50 GMT USD/CAD is up to 1.0157 from the open at 1.0113. EUR/CAD is up to 1.3580 from the open at 1.3539. GBP/CAD is lower at 1.5539 from the open at 1.5599.
Economic Concerns Continue to Weigh on Loonie Economic Concerns Continue to Weigh on Loonie Reviewed by Sopheap Chhin on 3:51:00 PM Rating: 5

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