Free Republic

The Canadian dollar, or loonie, is trading at its lowest level since early July, down 0.46% at 1.2893 per US dollar, after Canada's GDP unexpectedly shrank in August. Tuesday's GDP report showed the Canadian economy contracted 0.1% month-over-month, making for its first negative print in a year. Wall Street economists were expecting 0.1% MoM growth. Additionally, the economy grew at a 3.5% year-over-year clip, missing the 3.6% growth economists were anticipating. The loonie has been under pressure, falling about 7%, since shortly after the Bank of Canada surprised markets with a rate hike at its September meeting. At the time,...

The currency's decline is having a pronounced effect on Canadians' grocery bills. As Bloomberg reminds us, Canada imports around 80% of its fresh fruits and vegetables. When the loonie slides, prices for those good soar. "With lower-income households tending to spend a larger portion of income on food, this side effect of a soft currency brings them the most acute stress," Bloomberg continues. Of course with the layoffs piling up, you can expect more households to fall into the "lower-income" category where they will have to struggle to afford things like $3 cucumbers, $8 cauliflower, and $15 Frosted Flakes. Have...

The Canadian dollar fell as Justin Trudeau’s Liberal Party was set to win the most seats in Monday’s national election, ending Conservative Prime Minister Stephen Harper’s decade-long rule. Canada’s three major broadcasters -- CTV, CBC and Global News -- projected a Liberal win, while saying it was too early to predict whether the party would have enough seats for a majority government. The benchmark 10-year government bond gained 12 cents to $107.12 (Canadian), pushing the security’s yield down one basis point to 1.46 per cent. The currency weakened versus 15 of 16 major peers in the Asian trading session. Trudeau...