Lower Commodities Weigh on Loonie

Loonie continues to struggle against the US dollar, even as it makes gains against European currencies like the pound and the euro. Disappointing economic data and lower commodities aren’t helping the Canadian dollar.

Earlier this week, disappointing economic data pointed to slowing growth in Canada. After six months of gains for the economy, a bit of a stumble was seen. The news has many once again predicting a rate hike from the Bank of Canada is further down the line.
Loonie is lower than the greenback as the result of the news, and the expected policy divergence. Lower commodities today, particularly oil, also aren’t helping the Canadian dollar’s cause against its US counterpart.
However, Canadian data is still better than what’s coming out of Europe, and it shows by the fact that the loonie is gaining against the euro and the pound. Additionally, recent data from the IMF indicates that the Canadian dollar is growing in popularity as a reserve currency. It was officially recognized as a reserve currency not to long ago, and more central banks are stocking up.
At 10:26 GMT USD/CAD is up to 1.1180 from the open at 1.1157. EUR/CAD is down to 1.4109 from the open at 1.4136. GBP/CAD is down to 1.7968 from the open at 1.8014.

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