Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Briefing highlights

  • Can’t win for losing
  • Markets at a glance
  • BlackBerry posts quarterly profit
  • Bank of England holds rates
  • Husky Energy trims spending
  • Altria buys into Juul

Can’t win for losing

You can’t win because things keep going wrong

— The Phrase Finder

Example: You’re driving south for the holiday break, as many Canadians do. You have more in your wallet, thanks to lower costs at the gas pump, but the Canadian dollar is at death’s door.

All of which means that what Mobil giveth when you cross the border, somebody else taketh away when you convert your loonies to pay.

Statistics Canada reported Wednesday that gas prices eased by 5.4 per cent in November from a year earlier. That, the federal agency said, came “as declining global crude oil prices led to lower prices at the pump and the first 12-month decrease in the gasoline index since June, 2017.”

Story continues below advertisement

A notable decline, that, and something we’ve all seen recently when we fill up.

Or, as economists noted, consumers are gaining as Alberta suffers low oil prices.

Having said that, Western Canadian prices are up, and their discount to West Texas intermediate and Brent, the global oil benchmarks, has narrowed substantially since Alberta Premier Rachel Notley ordered production cuts to help buoy prices.

“The bad news, of course, is that the discount applies to world prices that are sinking like a stone … along with the loonie,” said Bank of Montreal senior economist Sal Guatieri.

“It’s no coincidence that the last time the currency flirted with 74 cents US (C$1.35), WTI was near current levels.”

The Canadian dollar and oil

CAD/USD (left scale)

WTI (US$ per barrel, right scale)

$150

$1.1

1.0

100

0.9

0.8

50

0.7

0.6

0

0.5

2001

2005

2009

2013

2017

THE GLOBE AND MAIL, SOURCE: BLOOMBERG

The Canadian dollar and oil

CAD/USD (left scale)

WTI (US$ per barrel, right scale)

$150

$1.1

1.0

100

0.9

0.8

50

0.7

0.6

0

0.5

2001

2005

2009

2013

2017

THE GLOBE AND MAIL, SOURCE: BLOOMBERG

The Canadian dollar and oil

CAD/USD (left scale)

WTI (US$ per barrel, right scale)

$150

$1.1

1.0

100

0.9

0.8

50

0.7

0.6

0

0.5

2001

2005

2009

2013

2017

THE GLOBE AND MAIL, SOURCE: BLOOMBERG

The loonie slipped to just above 74 US cents Wednesday, and today is still below 74.5 US cents.

WTI, the U.S benchmark, has dropped about 40 per cent from its recent peaks. And it gets interesting here, noted Mark McCormick, North American head of foreign exchange strategy at TD Securities, because lower crude prices “are more likely to hinder [the loonie] than higher prices would help it.”

Story continues below advertisement

In its latest forecast, just yesterday, CIBC World Markets projected the loonie would perk up to just below 77 US cents in the first quarter of 2019 before falling back to about 74.5 by the end of next year.

Read more

Markets at a glance

Read more
More news

Follow related topics

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies