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Canadian Forex/Bond Review: C$ Sinks With Oil Prices

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By Commodity News Service Canada

Winnipeg, September 1 – The Canadian dollar fell lower Tuesday due to losses in crude oil. Financial markets around the world bled a sea of red ink as Chinese economic worries mounted.

At 4:00 CDT Tuesday, the loonie was at US$0.7563 or US$1 = C$1.3222.

US crude oil dropped 8% as traders became uneasy about increasing inventory levels amid sluggish demand.

After two straight quarterly drops of economic growth, many economics say Canada now meets the technical indicators needed for a recession.

Canadian bonds eked out gains on the back of a domestic growth report that came in better than expected.

Canada’s two-year bond yield was at 0.422% Tuesday, down from 0.440% late Monday, according to electronic trading platform CanDeal. The 10-year bond yield was at 1.434%, down from 1.490%. Bond yields move inversely to prices.