Canadian Dollar Fall on Global Growth Outlook

The Canadian dollar weakened today, the fourth straight session of declines versus the U.S. currency, as the concern for the global economic recovery drove the stocks and the commodity prices down.
The Federal Open Market Committee said yesterday in the statement:

Housing starts remain at a depressed level. Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad.

This statement shows that the macroeconomic indicators suggest the slower economic growth. The European banking system also gives reason for worries, worsening the global economic outlook. The MSCI World index of shares declined for the third day and crude oil fell by 0.2 percent.
The loonie suffers from the pessimistic outlook for the global economic grows, being the growth-tied currency. Recent news, unfortunately, don’t support the belief in the global growth.
USD/CAD traded near 1.0429 today as of 22:40 GMT after opening at 1.0395. EUR/CAD rose to about 1.2864 from the opening rate of 1.2798.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *