Excerpt from: Forex
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| January 13, 2009 | | Loonie falls in forex trading | The Canadian dollar is dropping right now in currency trading on the FX market as economic data continues to reveal problems in the economy. The two latest bits of economic data to impact the loonie in forex trading are:
- New housing price index.
- Business survey.
Both are showing weakness, and indicating trouble ahead for the Canadian economy. Business sentiment is declining, and home prices are falling. This mixture indicates that support for the Canadian dollar will be limited.
Another issue affecting the loonie in forex trading is the fact that commodity prices are falling -- especially oil. As a commodity currency, the Canadian dollar relies heavily on trade to keep things moving, and with demand for oil waning, especially in the U.S., the loonie has little in the way of support.
| Topic Tags: Canadian dollar, commodities, currency trading, currency trading FX market, dollar currency trading, economy, forex trading, loonie forex trading | |
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