Once again, the Canadian dollar appears to be struggling. Even though there is a measure of enthusiasm for risk assets today, there is just too much, fundamentally, dragging on the loonie to help it enjoy some of the gains other currencies are seeing against the US dollar today.
Even though the euro and pound have seen their earlier rally against the dollar fizzle a bit, they are still gaining against the US dollar today. Many risk currencies are seeing good success against the greenback, but the loonie appears to have been left out of the party.
Worries about the economic situation in Canada continue to weigh on the loonie. When one considers that the 2008 surplus reported by Statistics Canada in terms of balance of international payments has given way to an account deficit amounting to almost four per cent of GDP, the situation certainly seems to be deteriorating.
As a result, there isn’t much boosting the loonie. Unemployment is on the rise, there are still housing bubble concerns, and other economic indications point to possible problems. Even high oil prices today aren’t helping the Canadian dollar.
At 16:03 GMT USD/CAD is up to 1.0280 from the open at 1.0273. EUR/CAD is up to 1.3398 from the open at 1.3382. GBP/CAD is up to 1.5554 from the open at 1.5525.
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