Loonie Struggles Against Major Currencies on GDP, Oil

Canadian dollar is once against struggling overall against its major counterparts. While the loonie is managing gains against the greenback right now, it is having a more difficult time against other major currencies.

Oil prices are once again causing problems for the Canadian dollar. Oil is down again today, falling below $48 per barrel. With the Canadian economy relying heavily on oil for its support, concerns about what’s next for Canada as oil continues to drop are starting to weigh on the loonie.
The Bank of Canada recently cut interest rates, and there is speculation that other measures might need to be taken if the Canadian economy doesn’t improve. Durable goods orders today aren’t expected to be very encouraging to the economy, and the BOC will have to take that into consideration at its next meeting.
Loonie is gaining against the greenback right now, but those gains might be short-lived. Many traders are positioning themselves for this week’s Fed meeting. Policy divergence between Canada and the United States is likely to favor the greenback over the loonie in the long run.
At 13:14 GMT USD/CAD is lower, dropping to 1.3036 from the open at 1.3043. EUR/CAD is up to 1.4434 from the open at 1.4325. GBP/CAD is also higher, moving up to 2.0239 from the open at 2.0233.

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