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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.