Canadian Dollar Down on Negative Stocks Perfomance

The Canadian currency, one of the most linked to stocks and commodities prices, had a weak performance today as stocks in Toronto and the crude oil fell, as concerns that the global slump will be prolonged are on the rise.

The loonie declined today against half of the 16 most traded currencies as the crude oil continued to fall, on concerns that a longer recession will not provide a strong demand for energy in North America and in the global scenario. After a report last week regarding a weaker-than-expected U.S. jobs data, equities markets around the world went down, speculating that the recession will continue further, affecting currencies like the Canadian dollar, since a significant amount of traders are opting for the safety of its U.S. counterpart.

USD/CAD traded at 1.1658 rising from 1.1587 in the intraday comparison.

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