Disappointing domestic data and a positively viewed release in the US saw the Canadian dollar fall to a 6 month low against the greenback. The loonie crashed through the 1.12 resistance level to hit 1.1259 which puts it within sight of the year’s low at 1.1279 which was seen in March.
Canadian trade was hit with a double whammy in August as exports fell and imports rose by the highest amount in nearly 2 years resulting in a trade deficit for the month. At the same time the US unemployment rate fell as US job growth really picked up.
The Euro also took a hit, falling to a 2 year low against the US$ and is now hovering just above the 1.25 resistance level. In the past 3 months the Euro has fallen 8% against the US$.