Canadian Dollar Tumbles | German Industrial Output Falls
Published August 7, 2019
The Canadian dollar weakened on Wednesday and hit a low of 1.3344, levels last seen in mid-June. This weakness was mainly driven by the broad US dollar strength and lower WTI crude prices, which fell more than 2 percent this morning.
German industrial production dropped significantly for the second time in three months in June, compounding fears that Europe’s largest economy could be heading for its first recession in more than six years. Overall, industrial production was down 1.5 percent compared with the previous month.
Director of the White House National Economic Council, Kudlow, said that the US holds the upper hand in trade negotiations with China and the Chinese economy is crumbling under the weight of the ongoing US-China trade war. Kudlow added that the Trump Administration wants to continue trade talks with China and is still planning to host a Chinese delegation for talks in September.
Louis Federal Reserve President James Bullard has stated that the Federal Reserve has already adjusted for trade uncertainty and does not see conditions warranting a 50-basis point cut all at once.