Canadian Dollar Mixed After Manufacturing Sales Demonstrate Surprisingly Big Drop

The Canadian dollar was mixed today, rising against some rivals, falling versus others, and staying flat against some. Fundamentals were negative to the currency, with an unexpectedly big drop in manufacturing sales and retreating prices for crude oil.
Statistics Canada reported that manufacturing sales dropped 1.3% in July after declining 1.4% in June. While traders were expecting a decline, they were counting on a much smaller drop of 0.3%.
The Canadian dollar rallied sharply yesterday thanks to a huge jump of oil prices caused by the news about an attack on Saudi oil facilities. But prices were in a corrective mode today, removing support for the loonie. Crude increased its losses after reports that Saudi Arabia may restore supply much sooner than was previously thought.
USD/CAD was at about 1.3248 as of 15:50 GMT today after opening at 1.3239 and rising to the daily high of 1.3300. EUR/CAD jumped from 1.4562 to 1.4657, though it was still unable to reach yesterday’s opening level of 1.4707. CAD/JPY traded at 81.60, near the opening level of 81.65, bouncing from the session minimum of 81.39.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

3 + four =