Global stock market jitters aren’t helping the Canadian dollar today. Loonie is weakening against its major counterparts as stocks fall around the world and as oil prices continue to drop.
All over the world stocks are falling. North American markets started this morning by plummeting. At one point the S&P/TSX dropped by more than 700 points, although some of those losses have been pared by now. In the United States, the Dow is down nearly 500 points. European and Asian stock markets are also showing dramatic losses.
These jitters aren’t helping the Canadian dollar, which usually gets help from solid and certain economic conditions. Also not helping the loonie is the fact that oil prices continue to fall. Crude oil is now below $39 per barrel. With all of the difficulties, it wouldn’t be surprising to anyone if the Bank of Canada cut rates again, and that would further harm the loonie in terms of policy divergence from the United States.
At 14:17 GMT USD/CAD is up to 1.3203 from the open at 1.3182. EUR/CAD is also higher, moving up to 1.5302 from the open at 1.4997. GBP/CAD is gaining as well, moving up to 2.0800 from the open at 2.0668. CAD/JPY is lower, down to 89.6960 from the open at 92.4700.
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