The Canadian Dollar has weakened against the US Dollar as investors expressed concern that gains in riskier assets have overtaken global economic growth.
The Canadian currency declined after US durable goods orders exceeded economist expectations in April. On Friday, the U.S. Commerce department reported orders for long-lasting manufactured goods rebounded in April, buoyed by more demand for military and civilian aircraft and an increase in business investment.
The currency was also not helped by a decline in the value of Canada’s biggest export of crude oil which fell for a second day due to signs of a global slowdown, a view not helped by data recently released by China.
“The run-up that we’ve seen from a more fundamental perspective, it’s run a little bit ahead of what would be expected just given our global backdrop that is still fairly shaky,” David Tulk chief macro strategist at Toronto-Dominion Bank’s TD Securities unit, said by phone from Toronto. “The Canadian dollar has been caught in the crossfire.”
The decline in commodity prices also caused the Australian and New Zealand Dollars to fall as well.
The Canadian dollar is likely to continue to suffer from near-term weakness due to a “combination of negative sentiment, bearish technical’s, a broadly stronger U.S. dollar on Fed expectations, Canada’s underperformance on growth and slowing flows,” said Camilla Sutton, chief currency strategist at Scotiabank.
The next piece of key data for the Canadian Dollar comes next Wednesday when the Central Bank of Canada announces its latest interest rate decision.
Current Canadian Dollar (CAD) Exchange Rates
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9661
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7458
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6402
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0003
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1959
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5618
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0350
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3407
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8361
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9996
(Correct as of 14:55pm GMT)
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