The Canadian dollar declined Monday as oil prices plunged below $50 a barrel and Canadian wholesale trade data dropped in May.
US August crude ended at $50.15 a barrel, while Brent September crude settled at $56.65. Also, wholesale trade tumbled by 1% in May, previously 1.7%.
The loonie stood at 76.94 US cents from Friday’s 77.00 US cents.
Weakness in the light of wholesale trade figures should not shock everyone. It implies May is going to be likely “flat for GDP and probably some downside risks there,” said Benjamin Reitzes, Senior Economist at BMO Capital Markets.
Meanwhile, traders are looking forward to core retail sales data due Thursday.
The material has been provided by InstaForex Company – www.instaforex.com