Canadian Dollar drops to two-week low as oil price dips on flaccid growth

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Canadian Dollar drops to two-week low as oil price dips on flaccid growth

On Thursday, the 7th of February, the Canadian Dollar had been weakened to its lowest level in nearly two weeks, as a widespread worry of global economic contraction had been keeping the large buyers at bay. Prefixing further penetrations, the domestic job data due to be released tomorrow, (February the 8th), had also been glooming the outlook, as it would likely to lure the Bank of Canada to trim interest rate further in order to steady the domestic market, meanwhile pushing Canadian dollar to its bottom lines.

Apart from that, US dollar had gathered pace on stronger job data and a retreat of unemployment data to a one and half year low, as it was trading at 96.12, posting its best day since January 15th, 2019, during the preparation of the report.

Meanwhile, the USD/CAD pair was trading at 1.3310, up by 0.72 percent, well on route to posting five straight intra-day gains. Trump’s Thursday’s (February the 7th) comment had renewed worries of resolving deep differences between US and China, which had added to the wobbling trickles linked to global scale slowdown, meanwhile the US crude dropped over 2.5 percent to $52.64 a barrel over the worries of sluggish global growth, which had spotlessly affected the oil depended on Canadian dollar.

Since Canada is a major producer of commodities including oil, its economy appeared to be at an inch away of showing signs of global scale slowdown, aligning to the lowering of crude oil price, as a chief market strategist at SIA Wealth Management, Colin Cieszynski said, “Energy commodities are getting hit pretty hard across the board. As a petrocurrency, the Canadian dollar often sees weakness from that. ”