The Loonie Swoons

Stephen L Kanaval |

At a recent Halifax Chamber of Commerce meeting Bill Morneau, the Canadian Finance Minister, said that the projections of slow growth were overstated. The fall of oil prices has directly affected the Canadian economy and now the administration of Prime Minister Justin Trudeau is admitting their disappointment.



The loonie took a crushing against the dollar on Tuesday. The U.S. dollar traded at its highest level against the Canadian dollar since March 2003. Morneau in that same speech said that investments in the country’s infrastructure and tax cuts for middle-income earners would lead to the growth that the administration projected. However, many market strategists see the slump of China and Europe will cause an even bigger downturn in the resource-reliant Canadian economy.

Canadians are very concerned about the rising costs of food and products due to higher import prices from the falling loonie. Morneau refused to answer questions from reporters at the meeting about a more comprehensive stimulus package.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Emerging Growth

Valuesetters Inc

Valuesetters Inc is a next generation technology company. The Company is focused in providing technologies and infrastructure-as-a-service (Iaas) to consumer through enterprise communications, entertainment, and game platforms.

Private Markets

Cross Campus

With over 500 members and operating 80,000 square feet by summer 2016, Cross Campus is one of the country’s top ten shared, collaborative office or "coworking" operators in the US.…

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…