TOKYO, Japan, Jan. 30, 2017 /Bloomberg/ Excon Fuji Securities
The USD/CAD currency pair slipped during early U.S. trade to hit the 1.4432 level before holding steady at 1.4493, losing 0.47%.
Sentiment on the Canadian dollar still vague after oil prices declined to $28 per barrel, its lowest level in 12 years.
The recent drop on oil prices spark as the Iranian oil exports were set to resume after Western sanctions were lifted, bolstering fears over increased supplies amid a global supply glut and slowing demand.
In Canada, data showed that the oil-dependent economy is continuing to lose momentum due to the China-led slowdown in global growth. In addition, the International Monetary Fund lowered its global growth perdition to 3.4% for this year and 3.6% in 2017.
Investors also keep an eye on China after official data on Tuesday indicated that the annual rate of growth printed 6.8% in the three months to December from 6.9% in the previous quarter. The full-year growth dropped 6.9% below the government’s target of 7%.
Meanwhile, the Canadian dollar gained ground against the euro, with EUR/CAD declining 0.62% to 1.5759.
In the euro zone, official figures indicated that its index of German economic sentiment lost 5.9 points to 10.2 this month from 16.1 in December. Analysts expected the index to decline by 7.9 points to 8.2 in January.
