Canadian Dollar Feels Pressure from Falling Stocks & Commodities

Outlook for the future of the global economy again worsened among investors, making them less interested in higher-yielding currencies. The Canadian dollar was one of the victims of such pessimistic sentiment.

September futures for delivery of crude oil (the major export commodity of Canada) slumped as much as 7.3 percent to $81.15 a barrel in New York. The Thomson Reuters/Jefferies CRB index dropped 2.3 percent. The S&P/TSX Composite index subtracted 3.1 percent. The Standard & Poor’s 500 index lost 4.5 percent.

The report tomorrow is expected to show inflation in Canada slowed. The Canadian currency fell against the euro and the yen yesterday, but managed to recover a little at the start of the new trading session. The loonie continued to fall against the greenback today.

USD/CAD traded near 0.9912 today as of 00:30 GMT after jumping yesterday from 0.9806 to 0.9903. EUR/CAD fell to 1.4176 on today’s trading session after it advanced from 1.4143 to 1.4193 on the previous session. CAD/JPY was at 77.43, while yesterday it fell from 78.05 to close at 77.25.

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