Falling Oil Prices Continue to Weigh on Canadian Dollar

Falling oil prices are weighing on the Canadian dollar again. With economic data still a little lackluster for Canada, and a housing bubble still threatening, there isn’t a lot to support the loonie right now. As a result, the Canadian dollar is lower against many of its major counterparts.

Oil prices are putting a squeeze on the Canadian economy. With oil prices falling again, and with oil prices down over the long term, things have been a little difficult for the loonie. Right now, low oil prices have impacted the economy of Alberta, and the economic ties the province has to the rest of the country are starting to provide some stress.
On top of that, there are warnings of a housing bubble. Home prices in Toronto and Vancouver haven’t slowed as much as expected, and government efforts to slow the rise in home prices have proved largely ineffective. Concerns about the impact of oil and a housing bubble have been weighing on the loonie for a while, and that is likely to continue.
At 15:18 GMT USD/CAD is up to 1.3078 from the open at 1.3011. EUR/CAD is up to 1.4582 from the open at 1.4557. GBP/CAD is up to 1.7130 from the open at 1.7051.

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