Loonie Loses Ground After Ending Last Week Strong

Canadian dollar ended last week on a strong note, but the currency is mostly lower today as a new week gets under way. Forecasts expect to see the loonie weaken through the rest of 2015.

Even with the positive jobs report issued at the end of last week, the Canadian economy still faces some challenges for the rest of 2015. One of the biggest issues likely to weigh on loonie performance is oil.
Oil prices continue to struggle. After briefly moving above $60 a barrel not too long ago, prices have dipped back below that level and that seems to be a line that can’t be crossed right now. Concerns about how continued low prices will affect the Canadian economy are likely to keep weighing on the loonie.
After last week’s surge, the Canadian dollar has settled down and is mostly lower today. Some of that is due to profit taking. However, analysts expect that in the long term, the loonie will weaken. Scotiabank expects the Canadian dollar to weaken against its US counterpart through the end of 2015.
At 11:19 GMT USD/CAD is up to 1.2437 from the open at 1.2434. EUR/CAD is also higher, moving up to 1.3860 from the open at 1.3807. GBP/CAD is lower, however, dropping to 1.8961 from the open at 1.8983.

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