Spring fever or March Madness is allowing noise to dominate forex movement sentiment for the loonie.
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Figure 1 shows the clearly positive relationship between oil and the Canadian loonie.
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The loonie, nicknamed after an aquatic bird, has soared against the hobbled U.S. dollar so far this century.
This reversed its previous under-performance in local elections in the capital, as London's memories of loonie Labour fade.
The loonie however looks ill with dealers continuing to see better levels to want own the currency outright.
When Sando begins to prefer the more daring Loonie, the boys' friendship founders.
Two US based reports today have pushed oil somewhat lower and this has kept the pressure square on the loonie.
These figures reported by Statistics Canada resulted in a weaker loonie which fell to almost 1.0670 versus the U.S. dollar.
During the next four years the loonie appreciated 47% vs. the buck.
Even the appreciation of the loonie, as Canadians call their dollar, against the American greenback has not knocked the economy from its stride.
Even with the negative Chicago Fed data though, the loonie may still struggle to push through the 25 pip wide support zone found just below 1.0300.
The US dollar soared against its counterpart to the north earlier today as negative data in Canada combined with falling oil prices to weaken the loonie.
The economic data out of Canada did little to support the loonie as wholesale sales missed the forecast and remained in contraction territory with a reading of -0.1%.
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The loonie (as it is known) has dropped against the muscle-bound American dollar by nearly 9% in the past year, slipping by 2.5% in the past month alone.
Asia is buying fewer Canadian forestry and mineral exports, which has exacerbated a 20-year downward trend in world commodity prices that roughly corresponds to the loonie's own 20-year depreciation.
If this can be the impetus that drives the loonie higher and a break below 1.0300 can be had, the next level of support looks to come in around 1.0225.
Despite their poor earnings, the major insurers strengthened their balance sheets, further penetrated the Asian markets, shopped for acquisitions with a loonie at par, and reported strong sales across most of the board.
The loonie (so named for the bird on the one-dollar coin) has soared from a record low of 62.1 American cents in January 2002 to over 74 cents this week, its highest level in six years.
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