The Canadian dollar enjoyed a day to forget in overnight trading, falling sharply in the wake of weaker oil prices and the deterioration in the outlook for central bank policy. The Loonie opens this morning at 1.3497, more than 60 pips lower than yesterdays reading.
The Canadian Dollar found itself on the losing end of the US Federal Reserves rate policy as it was heavily sold off in the wake of the announcement. Adding to the magnitude of the losses were thin volumes ahead of the holiday season and further falls in oil prices. The WTI Crude fell below $46 and Brent below $55, OPEC will address the concerns today but analysts still suggest the demand side of the equation looks shaky with reports that 2019 will be the slowest pace of growth in eight years. There was some positive news however, with Canada adding 39,000 jobs in November, following successive months of impressive jobs growth.
Moving into Friday the Canadian Dollar has a full economic calendar to digest. Canada is set to release their core retail sales reading, GDP figures and business outlook survey.