USD/CAD Surges Above 1.12 as Economic Growth Stalls

The Canadian dollar slumped to a six-month low after reports showed economic growth stalled in July.  The loonie, as the Canadian dollar is called for the image of the aquatic bird on its C$1 coin, extended its longest streak of losses in two months as a drop in oil and gas production offset manufacturing gains and weighed on the economy.

“What we had was a disappointment and some signs that the third quarter is off to a softer-than-expected start,” said Camilla Sutton, head of currency strategy at Bank of Nova Scotia. “From a currency perspective, that has proven a weight.”

Canada’s currency fell 0.4 percent to C$1.1205 per U.S. dollar as of 1:39 p.m. in Toronto, touching C$1.1220, the weakest since March 24. One Canadian dollar buys 89.25 U.S. cents. The loonie is down 3 percent this month, poised for the worst performance since January.

Bloomberg

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