Loonie Down on Oil, Economic Cautions

Canadian dollar is mostly lower today, falling as concerns about the economy continue and as oil prices remain weak. Although oil is higher than it has been in a while, it is still down on the day, and there are worries about what that means for the Canadian economy.

Loonie is pulling back today, after showing some strength earlier this week. The Bank of Canada declined to change interest rates, and the rhetoric accompanying the announcement seemed designed to temper any expectations of strong economic growth in the near future.
Policymakers expressed caution about the economy and business investment, and worried about stocks and the price of oil. Even though there is an expected production cap agreed to from some nations, oil prices are still struggling, partly because Iraq boosted oil production ahead of the cap. Oil is down on the day, and continued worries about weak oil are likely to weigh on the loonie in the future.
Without much to go on in terms of optimism for the economy and the future, it is little surprise that the Canadian dollar is dropping against most of its major counterparts today.
At 14:28 GMT USD/CAD is up to 1.2878 from the open at 1.2844. EUR/CAD is up to 1.4531 from the open at 1.4469. GBP/CAD is up to 1.8259 from the open at 1.8178.

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