Loonie losing loft on markets
Bad news for cross-border shoppers: the Canadian dollar has hit its lowest level since September 2010.
The loonie dropped to just above 94 cents American this morning, so this may make trips to the states a little more costly. However it’s actually good news for our manufacturing sector which usually prices its goods in American dollars.
The low level comes amid speculation that our economy is slowing. A report released last Friday suggests that may be the case. Canada’s GDP growth slowed in April, down to 0.1%, from 0.2% the previous month.
Compare that to the U.S., where economists say factory orders grew 2% in May, up from 1% the previous month, and you’ve got some more fuel added to the theory that a strengthening American economy is outpacing Canada.
A Statistics Canada report is due out later this week with trade statistics and the unemployment rate, which is expected to remain unchanged at 7.1%.
Al Sweeney has more.
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