It has been a challenging few days for the Canadian dollar, both domestically and internationally. It began last Friday when Statistics Canada reported a loss of 6,400 jobs, completely missing economists’ prediction of a 25,000 job gain. On the global front, China’s economic prowess, which has fueled the global economy, is now showing signs of stumbling. Recent trade data from China released on Tuesday revealed significant declines in imports and exports. Wednesday brought more negative news, with clear signs that China has entered a perilous deflationary phase, marked by declining prices and reduced economic activity, which could lead to even further declines. Predictably, these adverse developments weakened the Canadian dollar, as investors sought refuge in the relative safety of the US dollar, abandoning riskier assets like the Canadian dollar. The Canadian dollar fell to a low of 1.3501 on Tuesday.
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