Loonie Continues Its Fall Against the Greenback

Canadian dollar is continuing its fall against the greenback today, heading lower than it’s been in years as Forex traders look forward to today’s Federal Reserve announcement. It’s also not helping matters that oil prices continue to fall.

Loonie is trading mixed today. However, against its most important currency counterpart, the greenback, the loonie continues to drop. Even though the Canadian dollar is higher against the UK pound, it’s struggling against the euro, which seems to have come into its second wind, and the US dollar, which continues to benefit from expected policy divergence.

The Federal Reserve is expected to continue setting the stage for a rate hike as early as June, while the Bank of Canada just cut its benchmark rate — and might do so again in the near future. Also weighing on the loonie right now is the fact that oil prices keep falling. It doesn’t appear that oil prices have quite reached a bottom, and the loonie relies heavily on oil prices for support.

For now, there isn’t a lot going for the Canadian dollar, especially when compared to the US dollar.

At 13:30 GMT USD/CAD is up to 1.2801 from the open at 1.2788. EUR/CAD is up to 1.3592 from the open at 1.3552. GBP/CAD is down to 1.8765 from the open at 1.8862.

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