The Canadian dollar declined today amid the concerns for the economic recovery, which prompted the traders to cut the bets on the increase of the interest rates by the central bank.
The concerns were strengthened by the U.S. nonfarm payrolls, which dropped to 125,000 in June, compared to the expected decline by 106,000. The Canadian economy hasn’t showed the very good results either, as its growth had stalled in April. August delivery for crude oil, the main nation’s export, dropped by $1.18 cents (1.6 percent) to $71.77 per barrel on NYMEX.
The U.S. economic growth falters and dragging along with it the commodities and the Canadian currency. As the uncertainty grows, the odds of the increase of the rates fall. The overnight index swaps suggest that chance of the increase of the interest rates by the Bank of Canada on July 20 have declined to 45 percent.
USD/CAD traded at 1.0622 today as of 20:42 GMT after opening at 1.0595. EUR/CAD traded near 1.3331 after it opened at 1.3272.
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