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Canadian Dollar Goes Down on Concerns for U.S. Economy

July 15, 2010 at 22:34 by Vladimir Vyun

Canadian DollarThe Canadian dollar weakened today after the economic growth in the U.S., the biggest Canada’s trading partner, showed the signs of the slowdown, possibly reducing demand for the Canadian exports.

The Standard & Poor’s 500 Index went down 0.5 percent. The U.S. equities declined after the Federal Reserve Bank of Philadelphia’s index of the manufacturing activity slumped to 5.1 this month from the month before. The index still suggests growth, but has fallen for two consecutive months. Crude oil, the key export of Canada, dropped as much as 2.2 percent.

The Canadian dollars seems yet again to suffer from the outside influence, this time because of the close relations with the U.S. The meeting of the central bank’s policy makers, who would set the interest rates, scheduled on July 20th. The investors bet on 0.25 percentage point increase.

USD/CAD traded at 1.0378 as of 20:35 GMT today after it opened at 1.0324. EUR/CAD climbed to about 1.3432 from the opening rate of 1.3155.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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