Currency Note Worldwide

Canadian dollar continues to weaken

By Smart Currency December 3rd, 2013

Elsewhere yesterday, the Canadian dollar dropped against the majority of its peers. Sentiment from the central bank is that a projected driver of the economy is not currently evident, and the decline in oil prices over the last few weeks has been another instrumental factor, with crude oil being Canada’s primary export. Other worrying figures for the North American economy came out of the states, with strong US manufacturing figures yesterday providing a further argument for the Federal Reserve to rein back its monetary stimulus. With the US being Canada’s biggest trade partner, a tapering of stimulus would be bad news for the Canadian economy. Following strong manufacturing figures out of China, Europe and the UK, the resulting appetite for risk in the market triggered a sell-off of the traditionally safe-have Japanese yen, which continued its recent poor form – still trading at 2008-lows against sterling. Another effect of the strong Chinese data is that the Australian dollar bounced back from Friday’s two month low against its US counterpart. Strong Chinese manufacturing data has had a positive impact on the commodity and export-reliant Australian economy. Overnight last night we had retail sales data and an interest rate decision, both out of Australia. Get in touch with your trader for a live rate.