CAD Lower With Soft Manufacturing and Strong USD Pressure

The Canadian dollar was lower Monday as the American greenback advanced against other currencies and traders considered weak manufacturing data from China and the eurozone.

The loonie fell 0.13 of a cent to 88.59 cents US.

The China Federation of Logistics and Purchasing’s purchasing managers’ index dropped by 0.3 from September to 50.8. Any reading above 50 indicates expansion. The reading was in line with expectations.

The deceleration reflects a slowing of China’s economic growth to a five-year low of 7.3 per cent in the third quarter of the year.

A similar report into the manufacturing sector of the 18-nation eurozone from financial data firm Markit was similarly downbeat. Although the October eurozone index rose to 50.6 from the previous month’s 50.3, it’s not far off contraction territory.

Traders will also take in a speech and news conference in Toronto by Bank of Canada governor Stephen Poloz .

Commodity markets were mixed as December crude in New York gained 40 cents to US$80.94 a barrel.

December copper contract edged up a cent to US$3.06 a pound while December bullion declined $1.40 to US$1,170.20 an ounce.

It’s a busy week shaping up for traders with plenty of economic data to digest.

via Witco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza