The CAD certainly made liars out of us who were calling for a quiet trading day yesterday. Faced with mounting negative pressures and having to deal with crude oil down more than 2.4%, the loonie gave up another 0.50%. Interestingly enough, our currency has become the worst performer against the greenback since the start of the year, slumping 5.7%. For the time being, it’s tough to get an idea of an eventual floor for the CAD, but a correction may occur if domestic job data on Friday have a pleasant surprise in store for us. That remains a big “if,” however.
Another potential respite for the loonie could come this afternoon if the U.S. Federal Reserve were to prove less hawkish on raising interest rates. Although market observers were delighted that an agreement on U.S. government spending was reached on Monday, comments by President Trump that a government shutdown in September would be a good thing are cause for concern.
This morning, the Australian dollar has joined our currency, suffering from a new decline in prices for commodities such as copper, which is down more than 2%.
