Canada’s Dollar Goes Down with Crude

The Canadian dollar weakened today as the decline of crude oil prices and the signs of slowdown of Europe’s economy reduced appeal of riskier currencies.

The slower-than-expected growth of the German and the Eurozone GDP returned markets to risk-off mode. Contract for delivery of crude oil in September dropped 1 percent to $86.99 per barrel in New York. The Standard & Poor’s 500 Index fell 0.8 percent.

The fundamentals in Canada itself also weren’t supportive for the loonie. The decline of the Canadian manufacturing sales was expected to decrease from 0.7 percent in May to 0.3 percent in June. Instead, the sales were 1.5 percent lower.

USD/CAD advanced from 0.9789 to 0.9835 as of 17:54 GMT today, while the daily high was 0.9870. EUR/CAD went up from 1.4139 to 1.4162. Meanwhile, CAD/JPY fell from 78.41 to 77.98.

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