Loonie Suffers after Weak Growth Report

The Loonie extended its losses versus its U.S. counterpart after a report showed Canada’s economy unexpectedly contracted in May by the most in two years as production in the mining and oil and gas sector declined.

Canada’s currency fell versus a majority of its major counterparts as a report showed the U.S. economy grew less than forecast in the second quarter, after almost coming to a halt at the start of the year, as consumers retrenched. Crude oil, Canada’s largest export and global equities, traditional drivers of Canada’s dollar, declined.

“The fact that Canada and GDP weren’t great just took a toll on the Canadian dollar,” said Brian Kim, a currency strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc. “Disappointing GDPs in North America in general are not helping the currency.

Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell