The Canadian dollar on Tuesday touched its weakest versus the US dollar since March following a larger than projected trade deficit in May.
According to Statistics Canada, trade deficit was C$3.34 billion, the second largest on record and the 8th consecutive deficit, from C$2.99 billion in April. Exports slid 0.6%, while imports climbed 0.2%.
The loonie finished at 78.67 US cents from Monday’s 79.04 US cents.
The price action prolongs our stipulation over the last few days, “to price in further potential for a rate cut,” said Greg Moore, Senior Currency Strategist at RBC Capital Markets.
An initial recuperation in oil prices helped pull the Canadian dollar back from its lowest levels, although it remains lower after an almost volatile session.
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