The Canadian dollar weakened today after the decline of the U.S. consumer confidence and the decreasing prices for commodities damped the appeal of the currencies tied to growth.
The Conference Boardâs index of the U.S. consumers’ sentiment dropped to 50.4, compared to the median forecast of 51.3. The Standard & Poorâs 500 Index declined 0.3 percent. The S&P 500 rose previously by 0.5 percent and gained more than 8 percent since June 30th, while crude oil went up 2.7 percent.
Previous gains encouraged the traders to perform profit taking, curbing the equities and the oil prices, which also affected Canada’s currency. The rebound is possible, but some analysts point out that that fundamentals and technicals signal about further decline before recovery.
USD/CAD rose to 1.0360 form 1.0320 as of 18:41 GMT today after it tumbled as low as 1.0255. EUR/CAD rose to about 1.3456 from the opening level of 1.3405.
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