Canadian Dollar Extends Decline as Global Stocks Goes Down

Canada’s ruling party won majority in the Parliament, increasing confidence in the ability of Canada’s economy to sustain its growth, but that didn’t helped the Canadian dollar as the decline of global stocks outweighed the positive news.
The ruling Conservative Party won majority in the Canadian Parliament, ending seven years of minority governments. Party leader and Canada’s Prime Minister Stephen Harper promised to fix the imbalances of Canada’s economy, even though he plans tax cuts to help the economic growth. It’s good news for the Canadian currency in the long run, despite it’s still quite weak.
The Standard & Poor’s 500 Index fell 0.3 percent, while the S&P/TSX Composite Index dropped as much as 1.7 percent. Futures on crude oil, the main export of Canada, went down 2.4 percent to $110.85 per barrel on NYMEX. The yield on the 10-year security fell five basis points to 3.15 percent.
USD/CAD rose from 0.9522 to 0.9533 today as of 3:53 GMT. EUR/CAD traded at 1.4109 after the previous session’s advance from 1.4092 to 1.4117. CAD/JPY fell from 85.40 to 84.88 yesterday and traded at 84.86 today.

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