Oil Weighs Heavily on Canadian Dollar

Canadian dollar continues to struggle, thanks in large part to falling oil prices and stock prices. The loonie reached a five year low against the greenback earlier, and it appears that the struggle is likely to continue.

Oil prices have been losing steam recently, and crude oil is seeing its lowest level in quite some time. Currencies that rely on oil prices, like the Canadian dollar, are hard hit by this reality. Indeed, the loonie has lost quite a bit of ground against the greenback in recent days.
Not only are oil prices weighing on the Canadian dollar, but lower stocks are causing problems, too. There is a general flight away from risk and uncertainty, and the Canadian dollar is often associated with a certain degree of risk. Now, with oil dropping and stocks struggling, there isn’t a whole lot to bear the loonie up — especially since some are still concerned about policy divergence with the United States.
It’s been a brutal couple of days, and it doesn’t look as though things will turn around dramatically any time soon.
At 10:20 GMT USD/CAD is up to 1.1360 from the open at 1.1255. EUR/CAD is down to 1.4453 from the open at 1.4449. GBP/CAD is up to 1.8151 from the open at 1.8030.

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