Canadian dollar is lower today, struggling along with many commodities. One of the big drivers of difficulty today is the fact that there are concerns about growth in China, and commodities are heading lower. As a commodity currency, this development weighs on the loonie.
Concerns about the rate of Chinese growth this year are weighing a bit on some currencies right now, particularly the loonie. Commodity currencies are especially hard hit, since slower Chinese growth means lower demand for industrial commodities. Copper and oil are struggling today as a result.
Loonie is impacted by the oil prices drop due to its reliance on oil as part of its economy. There isn’t a whole to to help the loonie, since there is a bit of risk aversion surrounding the increasing tensions in Crimea (on top of Chinese growth concerns), and as long as oil prices are struggling the Canadian dollar is likely to struggle as well.
Gold is the only commodity really doing well right now, since it is in demand as more of a hedge than as an industrial commodity.
At 13:10 GMT USD/CAD is up to 1.1137 from the open at 1.1106. EUR/CAD is up to 1.5465 from the open at 1.5393. GBP/CAD is up to 1.8505 from the open at 1.8455.
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