The Canadian dollar sank this week, ending as the weakest currency on the Forex market, due to poor domestic macroeconomic data. There were plenty of important events this week, both good and bad.
The loonie performed relatively well for the most part of the week but logged huge losses on Friday after Canada’s economic growth demonstrated slowdown, which turned out to be much bigger than was expected. The big drop of crude oil prices added to the downside momentum of the currency.
The Great Britain pound was among the strongest currencies amid hopes for a Brexit delay and no “hard” Brexit, which strengthened after UK Prime Minister Theresa May changed her stance about those issues.
Among other news, trade talks between the United States and China did not have a definitive resolution, but it looks like truce between the world’s biggest economies was extended indefinitely. On the negative side, the summit between US President Donald Trump and the North Korean leader Kim Jong-un collapsed. Meanwhile, tensions between India and Pakistan increased after Pakistan shot down two Indian fighting jets.
USD/CAD jumped from 1.3134 to 1.3295 over the week. EUR/CAD climbed from 1.4884 to 1.5109. CAD/CHF slumped from 0.7576 to 0.7512 after touching the high of 0.7617.
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Canadian Dollar Ends Week Soft due to GDP, Crude Oil Prices
