Loonie moves lower as key commodity prices pull back; weak economic data

TORONTO – The Canadian dollar was lower Thursday morning as key commodities dipped alongside further discouraging figures on the global economy, in particular Asia and Europe.

The loonie fell 0.43 of a cent to 102.19 cents US before stock markets opened.

Among the sobering news for investors was a survey in Europe pointing to a deepening recession in Europe, figures from Japan that showed the country’s powerhouse export sector was continuing to suffer and a private survey of manufacturers in China that showed activity fell again in September, though at a slightly slower pace than August.

In the U.S., the Philadelphia Federal Reserve Bank’s gauge of regional manufacturing activity will give traders another glimpse at how the global economy is faring.

In commodities, the October crude contract on the New York Mercantile Exchange down 19 cents to US$91.79 a barrel.

Copper futures slid 6.5 cents to US$3.75 a pound while gold bullion fell $5.70 to US$1,766 an ounce.

“In speaking with other market participants it appears as though the greedy have become the needy as those looking for continued Canadian dollar strength missed the abrupt turnaround in U.S.-Canadian dollar and are now raising U.S. dollar buy orders daily,” wrote John Curran, senior vice president of CanadianForex in a note.