The Canadian dollar lost ground against its major rivals in European deals on Friday, as commodities slumped after weak PMI surveys from Eurozone and China, raising concerns about global growth outlook.
Metals suffered as Markit’s China manufacturing PMI contracted for the fifth straight month in July, touching a 15-month low. Additionally, business activities across the euro area showed no signs of progress in July, with the Greek debt crisis denting business prospects.
Gold prices have fallen to their lowest in more than five years as the dollar continues to strengthen on expectations the Federal Reserve will soon raise interest rates.
Copper and aluminum prices were also hit hard, amid fears over faltering demand due to weak growth in economies.
Meanwhile, the European markets are trading higher, amid a deluge of corporate news from the region. On the Greek front, officials from the European Commission, the European Central Bank and the International Monetary Fund will meet in Athens today to start detailed discussions with the Greek government on a new bailout deal.
In the Asian session, the loonie held steady against the yen, euro and the greenback, but strengthened against the aussie.
In European deals, the loonie fell to near an 11-year low of 1.3086 against the greenback and a new 2-week low of 94.77 against the yen, compared to yesterday’s closing values of 1.3035 and 95.02,respectively. The next possible support for the loonie may be eyed around 1.33 against the greenback and 94.00 against the yen.
Having advanced to 1.4239 against the euro at 4:50 am ET, the loonie reversed direction with the pair trading at 1.4327. The pair was valued at 1.4311 when it ended yesterday’s trading. The loonie is likely to challenge support around the 1.44 level.
The loonie eased to 0.9524 against the aussie, from an early 9-day high of 0.9482. At yesterday’s close, the pair was quoted at 0.9581.
Looking ahead, the U.S. new home sales for June and flash Markit manufacturing PMI for July are slated for release in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com