Canadian Dollar Weakens to Fresh Weekly Lows | World Bank Cuts Global Growth Forecast
Published January 9, 2020
This morning, the Canadian dollar broke above the 1.3050 marks and continued to push lower to its best level since December 31st. The market today will be closely eyeing the Bank of Canada’s Governor Poloz, who will speak later today about the current economic outlook and the housing start report which is scheduled to release at 8:15 EST.
The World Bank cut its global growth forecast for the fourth straight time on Wednesday, further reducing expectations by 0.2 percentage points each year for 2019, 2020 and 2021. The World Bank said the US outlook had decelerated with rising tariffs, increasing trade costs and the uncertainty over its economic relations with other countries weighing on investment and confidence.
The risk of Iran-US war eased as US President Donald Trump acknowledged that no Americans were harmed from Iranian missile strikes and added that Iran was appearing to be standing down. WTI oil extended the down move after the short-lived spike, pressured by easing war tension and a surprise build in crude inventory. At the time of writing, WTI crude oil was trading at $59.90 a barrel.