Canadian Dollar Remains Bearish on Stocks Performance

The Canadian dollar did not manage to revert its losing trend today as equities and commodities continued to decline globally, fueling emerging concerns that Canada’s economic recovery will suffer from a slower-than-expected recovery in most of its main trading partners.

Markets were rather cautious before today’s Federal Reserve interest rate decision announcement, and the loonie was affected by a low volume of trades today in stocks and commodities markets. The crude oil, Canada’s main export, continued to declined trading around $73 a barrel, and the outlook for the loonie has recently declined since demand for raw materials has fallen, specially after China announced new lending requirements for banks in the country, which may slow down manufacturing production in one of the world’s fastest growing economies and consumer of Canada’s commodities.

Fed’s statement may bring hope for the Canadian dollar if policy makers take a hawkish position on today’s decisions, otherwise, the loonie is likely to remain unattractive among the 6 major currencies, and may experience new record lows in the following weeks.

USD/CAD traded at 1.0675 as of 18:36 GMT from a previous rate of 1.0615 in the intraday comparison. CAD/JPY traded at 83.11 from 84.60.

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