The Canadian dollar fell over the week as prices for crude oil were slipping. The currency bounced by the end of the week, trimming its weekly losses, due to a positive inflation report and recovery of prices for crude.
Prices for crude oil were in decline for the most part of the week, trading below the $90 level. It was bad for the Canadian economy as crude is the major export of the country. Additionally, manufacturing sales fell 3.3 percent in August, demonstrating the first decline this year.
The Canadian currency was falling due to the negative fundamentals but was able to recover a bit by the weekend as Statistics Canada reported that the Consumer Price Index demonstrated a small increase, even though analysts expected no change for the index. On top of that, futures for crude oil gained, helping the loonie to rebound.
USD/CAD rose from 1.1178 to 1.1385, the highest rate since July 2009, before closing at 1.1277 by the weekend. EUR/CAD was up from 1.4120 to 1.4389 over the week, touching the weekly high of 1.4501. CAD/JPY declined from 96.19 to 94.79, reaching the weekly low 92.91.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.