Disappointing Chinese import volumes, which are seen as a barometer for global economic strength, and US Treasury Secretary Yellen’s comments about the potential catastrophic global economic impact of not resolving the US government’s debt ceiling, drove markets lower yesterday and this morning.
As usual, this negative market outlook led investors to purchase the USD and JPY, with both currencies outperforming their peers. The negative global outlook has also pushed oil prices down, resulting in the Canadian dollar reversing course by three-quarters of a penny from yesterday’s short-lived three-week high against the US dollar.
We expect a quiet day today for the Canadian dollar as investors position themselves for the all-important US inflation data tomorrow morning.
The Canadian Dollar is currently trading at 1.3402 against the US dollar.
