The Canadian Dollar fell against the US Dollar and several of its other main counterparts this afternoon as another piece of less-than impressive US data fuelled concerns regarding US economic recovery.
The Canadian Dollar Exchange Rate was in the region of 0.9748 against the US Dollar as of 14:45 GMT
As the US is Canada’s main trading partner, negative news for the former nation has adversely affected the outlook of the latter over the past several weeks.
After recovering from the almost six-week low recorded yesterday following the publication of poor economic data for China and the Eurozone, the ‘Loonie’ weakened to 97.47 US cents today as a report showed an unexpectedly large decline in US durable-goods orders.
Bookings for goods designed to last for at least three years were expected to decline by 3 per cent, but figures compiled by the US Commerce Department showed that they actually fell by 5.7 per cent in March – the most significant drop for seven months.
As strategist David Doyle comments: ‘What we’re seeing is doubts about the sustainability of global growth come to the forefront. Doubts about the sustainability of US growth could raise potential for Canada to suffer more of a downturn than we already are.’
Last week the Bank of Canada lowered its growth forecast for the world’s 11th largest economy.
At the time the BOC stated: ‘With continued slack in the Canadian economy, the muted outlook for inflation, and the constructive evolution of imbalances in the household sector, the considerable monetary policy in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required.’
Growth for the first quarter was cut from an initially forecast 2.3 per cent to 1.4, while the outlook for the second, third and fourth quarters were also lowered to 1.8 per cent, 2.3 per cent and 2.8 per cent respectively.
The nation’s exports are not expected to return to the peaks recorded prior to the onset of the global economic crisis until the second half of next year, but if weaknesses in the US economy persist this estimation may also be revised.
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9748 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7504 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6386 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1565 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 0.9482 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0259 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3325 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5658 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8632 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0540 >
(Correct as if 14:45 GMT)
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