Canada’s economic recovery is lagging so far behind the US that even a rebound in crude prices is failing to boost the nation’s currency.
The four-week correlation between the Canadian dollar and crude fell to an 18-month low last week. With oil surging 8% in August, the loonie is up just 0.5%, trailing other commodity-linked currencies such as the Norway’s krone and the Mexico’s peso, Yahoo Finance reported. Canada’s relative economic weakness, highlighted Aug. 5 when jobs data showed America’s economy continues to gain traction while Canada’s slips, has overtaken oil as the major driver for the loonie.
