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The Canadian Dollar hit a 7-week low as policymakers in the United States, Canada’s most important trading partner, failed to end the congressional stalemate regarding the debt ceiling. Falling prices for crude oil, Canada’s largest export, and a discouraging report regarding the Canadian trade deficit further contributed to the weakening of the Canadian Dollar.
The Canadian Dollar was last trading against the US Dollar at the level of 1.0351, which is a decrease of 0.44%.
In the United Kingdom, the Pound hit a 6-week low against the euro after the release of disappointing reports regarding construction and industrial output in August. According to the Office of National Statistics, industrial production fell by 1.1% in August, the steepest drop in almost 12 months. Although home prices rose to a record, the positive information could not prevent the Pound from falling against the US Dollar.
The Pound was last trading against the US Dollar at the level of 1.5951, which is a decrease of 0.09%.
The Australian Dollar, which was last week’s best performer, hit a 3-week high against the US Dollar amid speculation that the US government will resolve the budget impasse and that imports in China, Australia’s most important trading partner, are rising.
The Australian Dollar was last trading against the US Dollar at the level of 0.9467, which is an increase of 0.18%.
In commodities news, WTI Crude Oil fell after the International Energy Agency predicted that rising production in the US will significantly increase non-OPEC oil production. The International Energy Agency predicted in its monthly report that non-OPEC producers, led by the United States, Kazakhstan, and Canada, will raise their output for 2014 to 1.7 million barrels a day, which would be a near record.
WTI Crude Oil was last trading at the level of 102.02, which is a decrease of 0.96%.
Speculation regarding an imminent end to the budget impasse in the US caused gold to fall to a 3-month low, curbing demand for gold as a safe haven asset. The precious metal is heading for its first yearly loss since 2000 as many investors lose faith in gold as a safe haven asset and in response to speculation that the US Federal Reserve will slow down the current pace of its monthly bond purchases.