img CDN
img AUS
img NZ
img US
Call us now: 1.844.363.7297
imgOnline Dealing Login

Loonie Falls after Downgrade of Canadian Bank Ratings

Published May 11, 2017
  • The Canadian dollar is enduring sharp losses against its American counterpart this morning after Moody’s downgraded long-term ratings, baseline credit and counter party risk assessments for six Canadian banks
  • The rating agency noted concerns of high consumer debt levels and high housing prices that could potentially cause risks for losses; the loonie faces further downside when the TSX and equities trading centers open at 9:30 AM EST
  • Oil prices continue to move higher this morning, marking their biggest one-day jump since December 2016; prices improved after data from US government data revealed the largest weekly decline in US oil inventories so far in 2017
  • Comments from Iraqi petroleum minister Ali al-Luiabi helped further extend gains for oil prices after he announced that there is emerging consensus among OPEC and non-OPEC countries to extend an output cut agreement to help lower global oil supply
  • US unemployment rates improved as there were 236,000 claims versus an expected 245,000; US producer price indexes also moved higher
  • The Bank of England left interest rates unchanged at 0.25% and made no changes to its bond buying stimulus program as expected