Excerpt from: Forex Forecast
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| November 14, 2008 | | Loonie in forex trading | The Canadian dollar continues to drop in currency trading on the FX market. Just a year ago, as the effects of the subprime lending crash became really apparent, the loonie was in the area of parity with the U.S. dollar. Indeed, the Canadian dollar spent a great deal of time in the neighborhood of parity with the greenback.
Now, however, that seems to be a thing of the past. Commodities were on the rise then, and now they are falling. Oil prices are especially important to Canada, since the country exports so much of it. With oil prices falling, there is little to support the loonie in forex trading.
And, with the prospect of global recession, it appears that there will be little in the near future to help support the Canadian dollar in currency trading. As a result, it is likely to continue to struggle on the FX market.
| Topic Tags: Canadian dollar, currency trading, forex trading, FX market, greenback, loonie forex trading, oil prices, recession, U.S. dollar | |
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