Canadian Dollar Suffers Together with Commodities

The Canadian dollar slumped today as China’s not-so-good macroeconomic data dragged prices for raw materials down, hurting commodity-linked currencies along with them.
Economic reports released from China on Monday were mixed but mostly disappointing to investors. Poor economic news from the world’s second largest economy and a major consumer of raw materials certainly had its negative impact on the commodity market.
Crude oil was among the losers (the West Texas Intermediate grade falling more than 2 percent and Brent dropping more than 3 percent). It was bad news for the Canadian dollar as Canada’s economy relies heavily on oil exports. As a result, the loonie dropped against other majors, even the embattled euro.
USD/CAD rallied from 1.2902 to 1.3013 as of 21:17 GMT today. EUR/CAD gained from 1.4658 to 1.4738. CAD/JPY dropped from 92.48 to 91.79.

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