Canadian Dollar Falls as Economy Slows

The Canadian dollar slipped today after the economic reports from both the US and Canada itself intensified the concerns about the slowdown of the global economic growth.
The wholesale sales in Canada declined 0.3 percent in June, while the growth by 0.4 percent was predicted. The US unemployment claims unexpectedly jumped to 500,000 last week. The Standard & Poor’s 500 index declined 1.3 percent and the MSCI World Index fell 0.2 percent, following the previous increase to 0.3 percent.
The hostile $40 billion bid by the BHP Billiton Ltd. for the Potash Corp. previously boosted the Canadian currency. It may yet bolster the loonie in the future, but for now the offering was rejected as the price was considered “grossly inadequate”.
USD/CAD rose from 1.0294 to 1.0399 today as of 18:09 GMT after the decline to 1.0246. EUR/CAD rose from 1.3227 to 1.3305.

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