Canadian Dollar Falls Along with Other Commodity Currencies

The Canadian continued continued to fall against the majors today, along with the other “commodity” currencies, as the global growth perspectives remained dim.

The loonie, as the currency is often called, fell to the lowest level in two weeks against the US dollar, traded with a great volatility against the euro and demonstrated its 5th straight day of decline against the Japanese yen today.

Along with the general market sentiment that the global economic growth will have to scale down, following the US deficit-cutting measures, the Canadian dollar was also influenced by the today’s bad statistics from the United States. The personal income grew slower than expected in June (0.1 percent vs. 0.2 percent forecast), while the personal spending fell by 0.2 percent (with a 0.1 percent gain forecast).

USD/CAD rose from 0.9559 to 0.9600 as of 16:47 GMT today, with a daily high at 0.9618 — the lowest level since July 18. EUR/CAD rose only slightly — from 1.3626 to 1.3632. CAD/JPY declined from 80.91 to 80.34.

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