Canadian dollar weakens as economic indicators point to challenges ahead
2023.11.23 00:53
© Reuters.
The Canadian dollar has been on a downward trajectory this week, influenced by various economic factors and market movements. Despite an overall stronger US dollar, the currency pair marked its third consecutive session of decline on Thursday, trading near 1.3680. This comes amid a broader dip in the DXY index, which measures the greenback against a basket of other major currencies, falling to around 103.70 as equity markets showed signs of cooling before the US Thanksgiving holiday.
The loonie’s weakness was particularly noticeable on Wednesday as West Texas Intermediate (WTI) prices dropped to $76.10. This decline in one of Canada’s key exports was attributed to delayed discussions among OPEC+ members and signs of a slowing US economy, both of which can have significant implications for Canada’s commodity-driven economy.
Looking ahead, market participants are turning their attention to upcoming economic data releases. Canada’s retail sales figures will be closely watched for signs of consumer spending health, while anticipated declines in the US S&P Global Purchasing Managers’ Indexes (PMIs) could provide further insights into the economic outlook. This focus on fresh data follows some significant releases from the United States, including a sharper-than-expected fall in Durable Goods Orders by 5.4%, a decrease in Jobless Claims to 209K, and an uptick in Consumer Sentiment to 61.3.
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