Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Canadian dollar reverses from 2-week high on global growth worries

ForexJan 28, 2019 16:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Canadian dollar reverses from 2-week high on global growth worries

* Canadian dollar falls 0.2 percent against the greenback

* Price of U.S. oil falls 3.2 percent

* Bond prices trade higher across a flatter yield curve

By Fergal Smith

TORONTO, Jan 28 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday, pulling back from its highest level in more than two weeks as oil prices fell and investors worried about the impact on the global economy of a slowdown in China.

U.S. stocks tumbled as warnings from Caterpillar Inc (NYSE:CAT) CAT.N and Nvidia Corp NVDA.O added to concerns about a slowing Chinese economy and tariffs taking a bite out of U.S. corporate profits. from China are due to visit Washington this week for the next round of trade negotiations with the United States. The trade dispute between the world's two largest economies could worsen the outlook for global growth. is running a current account deficit and exports many commodities, including oil, so its economy could be hurt by a slowdown in the global flow of trade or capital.

"I see no real argument on how we can buck the trend of a global economic slowdown and in many ways Canada may feel that slowdown harder and longer than most developed economies." said Michael White, a portfolio manager at Picton Mahoney Asset Management in Toronto.

U.S. crude oil futures CLc1 settled 3.2 percent lower at $51.99 a barrel after an increase in U.S. crude drilling pointed to further supply growth. Still, oil has rebounded about 23 percent since hitting an 18-month low in December. 3:43 p.m. (2043 GMT), the Canadian dollar CAD=D4 was trading 0.2 percent lower at 1.3252 to the greenback, or 75.46 U.S. cents, reducing some of Friday's sharp gains.

Earlier in the session, the currency touched its strongest since Jan. 11 at 1.3204.

The 17-day high for the loonie came despite weak domestic data last week that prompted some economists to project that Canada's economy contracted in November. November gross domestic product data is due on Thursday.

The Bank of Canada cut its near-term growth forecasts earlier this month as it left its benchmark interest rate on hold at 1.75 percent. our lag on the U.S. in interest rates we would suggest that the Canadian dollar is vulnerable down to 70 (U.S.) cents," White said.

The Federal Reserve's key overnight lending rate was raised in December to a range of 2.25 percent to 2.50 percent. The central bank is due to make an interest rate decision on Wednesday. government bond prices were higher across a flatter yield curve, with 10-year CA10YT=RR rising 12 Canadian cents to yield 1.963 percent.

Canadian dollar reverses from 2-week high on global growth worries
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email