Yahoo Finance Loonie Falls on Weak Manufacturing, Falling Oil Prices
Investing.com - The Canadian dollar was weaker against the U.S. dollar on Tuesday after soft manufacturing data and falling oil prices erased gains from the prior session.
USD/CAD jumped 0.3% to 1.3280 as of 10:49 AM ET (14:49 GMT).
Canadian manufacturing sales fell unexpectedly to -1.3% in July compared to a revised fall of -1.4% in the prior month due to auto and metal plant shutdowns.
Meanwhile, falling oil prices also weighed on the loonie, which is closely linked to the price of crude. Reuters reported that Saudi Arabia’s oil production could be restored to normal levels faster than thought.
An attack on Saudi oil fields over the week crippled nearly 5% of global oil production, rising fears of a global economic slowdown and increasing tensions between the U.S. and Iran.
Elsewhere, the Japanese yen, which is seen as a safe haven in times of market turmoil, fell, with USD/JPY up 0.1% 108.25. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 97.982.
The pound rose to a session high, with GBP/USD rising 0.4% to 1.2473. The Irish foreign minister said that Ireland won’t sign up for permanent border checks and told the U.K. to come up with a solution. EUR/USD was also higher, gaining 0.4% to 1.1044.
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