The C$ is on the back foot. Against the US dollar, the loonie is at the lowest in two weeks, with USD/CAD touching the 1.04 level.
Against the euro and the pound, the loonie lows are deeper. One of the reasons for the slide is a weak Wholesale Sales figure.
This monthly indicator plunged by 2.8%, significantly worse than a drop of 0.5% that was expected and worse than the drop of 2.2% recorded previously. Most signs from Canada have been more positive of late and also the heightened price of oil after the instability in Egypt contributed to a stronger Canadian dollar, but the atmosphere has changed.
The Canadian dollar is also carried lower by the weakness seen in its peer commodity currencies: the Australian and New Zealand dollar are weaker due to some dovish from their respective central banks.
For USD/CAD, the next level is 1.0446, which is an old line, and the next one is 1.05. Support is found at 1.0340 and 1.03. For more, see the Canadian dollar forecast.
Against the euro, the Canadian dollar is in a weaker situation: at 1.3950, EUR/CAD is at the highest level since November 2011. The cross broke the high seen earlier in the month. This comes as EUR/USD broke to a 6 month high.
Also GBPCAD is not left behind. at 1.63, GBP/CAD is at the highest since October 2011. Mark Carney, a Canadian that led the Bank of Canada is now the head of the Bank of England. He was expected to weaken the pound. Oh well, not against the dollar and not against the currency of his country.
