Canadian Dollar Drops as Fundamentals Do Not Look Good

The Canadian dollar closed lower today on concerns that the nation’s economy is struggling and this will not allow the Bank of Canada to perform an interest rate hike that it was promising for some time.
Manufacturing sales declined 0.5 percent in June, demonstrating the fourth decrease in six months. Analysts have predicted an increase by the same rate. This week most currencies were especially susceptible to domestic news. There were not many reports from Canada over week and the data that was released was not good, hurting the loonie.
The Canadian currency was especially weak against the US dollar on worries that Canada’s economic growth is lagging the US one. In fact, the US economy did not look all that good, but at least there were some good reports from the United States during this week.
USD/CAD rose from 1.0303 to close at 1.0336 today.EUR/CAD went up from 1.3751 to 1.3831 before closing at 1.3782. CAD/JPY ended the session at 94.32 after opening at 94.43.

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