Canadian dollar is falling today after a relatively successful run last week. With the oil boom over for Canada, though, there is a lot of money flowing out of the country and the loonie is dropping as a result.
Last week, loonie had a relatively successful week. This week, though, most of that success is gone as oil prices continue their drop and as Forex traders take profits.
With concerns about what’s next for Canada as the oil boom deteriorates, it’s not really surprising that Forex traders would count their good fortune and lock in gains from last week before turning their attention to other currencies.
Oil prices are still moving lower today, thanks in large part to the fact that OPEC isn’t willing to cut production right now. Canada is seeing the end of an oil boom that lasted for a decade, and there isn’t anything comparable to replace that boom for the Canadian economy, so money is flowing out of the country. As a result, the loonie continues to drop as it is tied tightly to the performance of oil.
At 15:46 GMT USD/CAD is higher, gaining to 1.3082 from the open at 1.3073. EUR/CAD is also higher, moving up to 1.4448 from the open at 1.4436. GBP/CAD is up to 2.0236 from the open at 2.0203.
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