Thursday, October 23rd7.7°C
23888
23778

Loonie lower amid grim European data

The Canadian dollar was slightly lower Wednesday amid relief that a clear-cut winner has emerged from Tuesday's U.S. presidential election. Barrack Obama won by a large margin in electoral college votes although the popular vote count was much closer.

The currency dipped 0.14 of a cent to 100.69 cents US after rising 0.5 of a cent on Tuesday as weak European data increased risk aversion to resource-based currencies such as the loonie.

The European Union on Wednesday downgraded its economic forecasts, saying it now expects the gross domestic product of the 27-country region to contract by 0.3 per cent on an annual basis this year, rather than remaining flat as it predicted in the spring.

It also said that the 17 countries that use the euro currency will see their GDP fall 0.4 per cent, against a previous expectation of a 0.3 per cent contraction.

And Germany's panel of independent economic advisers said that country's economy, which is Europe's biggest, will grow by only 0.8 per cent next year. The government last month lowered its own 2013 growth forecast to one per cent from 1.6 per cent.

Meanwhile, traders now wonder how Democrats and Republicans will come together to avoid automatic tax hikes and steep spending cuts set to click in at the end of the year. Investors worry the shock from this so-called fiscal cliff scenario would send the U.S. back into recession.

The Republicans kept control of the House of Representatives while the Democrats continue to have a majority in the Senate.

"The dead heat on the popular vote (based on current declarations) is hardly a sweeping mandate and is likely to leave the Republicans in no mood for compromise on tax and spending policy," said Adam Cole, Head of G10 FX Strategy at RBC Europe Limited.

"With the election outcome behind us, however, attention returns to Europe in the near-term."

Greece was also back in focus ahead of a crucial vote in its parliament later in the day that could determine whether the country stays in the eurozone.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14475.52+163.449
S&P CDNX809.001.00
DJIA16709.47248.15
Nasdaq4455.368+72.521
S&P 5001954.11+27.00
CDN Dollar0.8900+0.0005
Gold1228.90-16.60
Oil81.35+1.22
Lumber330.10+1.40
Natural Gas3.66+0.001

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.17+0.02
Cantex0.065+0.01
Anavex Life Sciences0.1980.00
Metalex Ventures0.045-0.005
Russel Metals33.13+0.60
Copper Mountain Mining2.13+0.03
Colorado Resources0.14-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.4050.00

 



23833

FEATURED Property
20894731338 Loseth
3 bedrooms 2 baths
$449,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...

_








Member of BC Press Council


23091