The Canadian dollar dropped against its US counterpart today, reaching a lowest level in more than a month, pressured down by signs of economic growth in the United States. The currency also retreated against the euro but managed to log gains versus the Japanese yen.
US economy expanded 4 percent in the second quarter of this year, faster than was expected. It is not necessarily bad for the Canadian currency in a long run as the United States is the biggest trading partner of Canada, meaning that economic expansion in the USA leads to improving prospects for Canada’s exports. Yet for now Forex traders are selling commodity-related currencies, such as the Australian and the Canadian dollars.
As for economic news from Canada itself, indicators were somewhat mixed. The Raw Materials Price Index rose 1.1 percent in June, mainly driven by higher prices for crude energy products. At the same time, the Industrial Product Price Index slipped 0.1 percent.
USD/CAD jumped from 1.0852 to 1.0908 as pf 15:21 GMT today, trading near the highest rate since June 10. EUR/CAD advanced from 1.4550 to 1.4592. CAD/JPY edged higher from 94.06 to 94.27.
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