Canadian dollar weakens as GDP report comes out worse than expected

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar             1.3150-1.3250

Euro                     1.3100-1.3200

Sterling                1.5200-1.5300

WTI Oil (opening level) $88.30

The US Dollar index is again stronger as stocks continue to slide and the Chinese government announced a complete lockdown of Chengdu to combat the COVID 19 virus, Chengdu is the biggest city in the Sichuan province and this lockdown will surely slow the Chinese economy once again. The Euro again slipped this morning as EUR.USD moved back towards parity with more poor economic data coming out of the region in the form of a second straight month of poor manufacturing data. 

The Canadian Dollar continues to weaken off as USD.CAD almost hit 1.3200 (0.7576) yesterday before pulling back, other commodity currencies are all weaker as well as the New Zealand and Australian Dollars have hit their lowest levels since July. The 2nd Quarter Canadian GDP report came in slightly weaker than expected yesterday so it confirms that the Canadian economy is indeed slowing in the wake of higher interest rates and most likely headed to a recession. It is hard to see a much stronger Canadian Dollar in the current environment.

Lots of secondary data out today as markets will get set for tomorrow's US Employment report, ahead of that it should be more US Dollar strength as US and Canadian stocks will have another down day.