The Canadian dollar resumed its decline versus the US currency and extended its losses versus the euro today after the leading indicators dropped and the report showed that the economic confidence deteriorated.
The leading index went down 0.1 percent in September, its first decrease since April 2009. In August the index rose 0.6 percent and the analysts promised it to rise this month by 0.2 percent. The Nanos Economic Mood Index dropped to 111.4 in the third quarter from 116.0 in the second. This was the third straight quarterly decline.
The Bank of Canada cut yesterday its economic growth forecast for the third quarter of 2010 from 2.8 percent to 1.6 percent. The Bank estimated that the economic growth would slow to 2.3 percent next year as the stimulus would be gradually reduced.
USD/CAD climbed from the opening level of 1.0210 to 1.0283 as of 18:19 GMT today after it dropped to the intraday low of 1.0167. EUR/CAD traded at 1.4318 after it opened at 1.4255.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.