Canadian Dollar Falls As Economy Contracts
June 30 2015 - 9:21AM
RTTF2
The Canadian dollar slipped against its major rivals in European
deals on Tuesday, as data showed that Canadian economy contracted
for the fourth consecutive month in April.
Data from Statistics Canada showed that gross domestic product
declined 0.1 percent in April, contradicting expectations for a 0.1
percent gain. In March, Canada's economic growth dropped by 0.2
percent.
On an annual basis, Canada's economic growth slowed 1.2 percent
in April, following a 1.5 percent increase in March. Economists had
been expecting a 1.6 percent growth.
Meanwhile, crude oil prices nudged higher after hitting 3-week
lows as focus remained on the Greek debt crisis.
Crude oil was up 34 cents at $58.67 a barrel on the New York
Mercantile Exchange.
The loonie was trading mixed in the previous session. While the
loonie held steady against the aussie, it was higher against the
euro and the greenback. Against the yen, the loonie fell.
The loonie reversed from an early high of 99.04 against the yen
and was trading at 98.51. The loonie is thus heading to pierce its
early nearly 2-month low of 98.31. If the loonie extends slide,
97.5 is possibly seen as its next support level.
The loonie dropped to a 3-week low of 1.2425 against the
greenback, after having advanced to 1.2362 at 8:15 am ET.
Continuation of the loonie's downtrend may take it to a support
around the 1.25 mark.
The loonie weakened to a 5-day low of 0.9570 against the aussie,
off early high of 0.9491. The loonie is seen finding support around
the 0.965 area. At yesterday's close, the pair was worth
0.9520.
The loonie was trading lower at 1.3937 against the euro,
following an advance to 1.3807 at 5:00 am ET. The next possible
support for the loonie may be located around the 1.42 zone.
The flash data from Eurostat showed that Eurozone inflation
slowed slightly in June after accelerating in May.
Inflation eased to 0.2 percent in June, in line with forecast,
from 0.3 percent in the prior month.
Looking ahead, U.S. Chicago PMI and U.S. consumer confidence,
both for June, are due shortly.
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