The Canadian dollar sank today, falling to the lowest level since June 2017 versus the US dollar. The main reason for the decline was likely the slump of prices for crude oil, though surprisingly poor macroeconomic data played its part as well.
Crude oil posted big losses today, with the North American grade tumbling as much as 5% before reducing losses later. Concerns about global economic growth and oversupply made investors sell the commodity and seek safer options.
Meanwhile, Statistics Canada reported that manufacturing sales fell 0.1% in October. That was a surprise to analysts, who had expected a 0.3% increase.
There will be several macroeconomic reports released over the rest of the week, most important of them being inflation data on Wednesday and GDP report on Friday. Tomorrow’s policy announcement from the US Federal Reserve should also have a tremendous impact on the Canadian currency as well as on the rest of the Forex market.
USD/CAD gained from 1.3406 to 1.3481 as of 19:08 GMT today. EUR/CAD jumped from 1.5210 to 1.5330. CAD/JPY declined from 84.15 to 83.46.
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Canadian Dollar Sinks Alongside Crude Oil
