Employment Situation Weighs on Canadian Dollar

Canadian dollar is lower today, thanks in large part to concerns over the employment situation and the economy. However, it’s also not helping that oil prices still aren’t recovering quite as much as some would like.

Loonie is mostly lower today, falling even against the euro, which is struggling quite a bit today. Canadian dollar is being hit by an employment situation that is dragging on the economy. Employment growth in Canada remains fairly weak, and that is weighing on other aspects of the economy. Wage growth has been stagnant and that is encouraging consumers to save, rather than spend.
Another problem for the Canadian dollar right now is the fact that oil price continue to struggle. It’s true that oil has gained ground in recent months, but it is still below the $60 a barrel level, and there is a chance that oil could fall further in the coming weeks, depending on the supply situation in the United States and elsewhere.
For now, there’s not a lot that can be done for the once-strong Canadian dollar.
At 10:47 GMT USD/CAD is up to 1.2135 from the open at 1.2081. EUR/CAD is also higher, gaining to 1.3540 from the open at 1.3527. GBP/CAD is up to 1.8772 from the open at 1.8658.

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