The Canadian dollar continues to weaken. Evidence of economic slowing is weighing on the loonie, and there is speculation that the Bank of Canada will decide to cut interest rates at some point in the near future in order to stimulate the economy a bit.
The Canadian dollar has been grinding steadily lower recently, losing value against its major counterparts, especially as things seem to be deteriorating ahead of the holidays.
Annual inflation in Canada declined to 0.7 per cent in October, according to Statistics Canada. The target rate for inflation is 2 per cent, and the Bank of Canada likes to see inflation in the 1 to 3 per cent range. Now many expect that the BOC will have no choice but to cut rates in a move to stimulate the declining economy.
Another consideration is the fact that oil continues to struggle. Oil prices are declining, with oil dropping below $95 a barrel. Oil is a major export for Canada, and the loonie is often tied to oil’s performance. There are some hopes that Canadian retailers will offer Black Friday deals of their own, keeping some shoppers north of the border next week.
At 15:05 GMT USD/CAD is up to 1.0530 from the open at 1.0521. EUR/CAD is up to 1.4245 from the open at 1.4173. CAD/JPY is down to 96.0150 from the open at 96.0640.
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