Loonie falls on weak results equities and crude oil volatility
Loonie falls on weak results equities and crude oil volatility
12-31-2009 06:47
The Loonie, an informal term for the Canadian Dollar, fell from the strongest rate this year against the Common European Currency due to equities failing to extend the advance reached at the start of this week’s trading session, pushing the Canadian Dollar down against the US Dollar.Equities – Loonie
The Canadian Dollar reached the strongest rate against the Greenback in two months, followed by yesterday’s fall, and continued this decline today due to the instability of crude oil prices impacting the Loonie negatively, while stocks posted rather weak results today. The Canadian Dollar’s performance is strongly influenced by equities, and today’s fall in combination with a weaker demand for commodities impacted the Loonie’s decline this Wednesday. The Loonie dropped particularly against the Greenback due to an economic activity report beating estimations and resulting in increased confidence towards the recovery of the US economy next year.Crude oil
The instability of crude oil prices results in big fluctuations of the Canadian Dollar rates, providing favorable day-trading options, according to currency analysts. The prospects for the Loonie are still above average since demand for commodities will rise as the worldwide economy improves, and thus favoring the Canadian Dollar to profit from such developments.
