Canadian dollar weakens as risk-off sentiment drives markets
FXC•The Canadian dollar fell 0.3% to 1.4255 per U.S. dollar as risk-off sentiment boosted the greenback. Investors weighed Federal Reserve meeting minutes, while oil futures dropped 1.4% to $88.20 a barrel.
1. Loonie falls
The Canadian dollar weakened against its U.S. counterpart on Wednesday as broad gains for the greenback followed a downturn in risk appetite. It traded at 1.4255 per U.S. dollar, or 70.15 U.S. cents, after ranging from 1.4207 to 1.4280. The currency touched an 18-month low of 1.4293 on Monday.
2. Markets and data
“It's not anything CAD specific,” said Amo Sahota, director at Klarity FX. “This is risk-off sentiment, and the loonie is getting mopped up into that as well.” The U.S. dollar rose against major currencies as French bond concerns weighed on the euro and Wall Street stocks pulled back from record highs. U.S. crude futures fell 1.4% to $88.20 a barrel.
3. Rates in focus
Federal Reserve policymakers were divided last month over the rationale for raising interest rates, according to meeting minutes. Canadian employment data for September, due Friday, could guide expectations for Bank of Canada rate hikes; economists expect a gain of 9,200 jobs and unemployment edging up to 6.5% from 6.4% in August. Canada's 10-year government bond yield rose 1.1 basis points to 3.939%.
