Thursday, July 16, 2015

Canadian dollars

Foreign investors sold a net 5.45 billion Canadian dollars ($4.22 billion) in Canadian securities in May, Statistics Canada said Thursday. Meanwhile, Canadians acquired a net C$5.58 billion in foreign securities, targeting foreign equities and U.S. debt instruments.
Ovearll, the transactions in May resulted in a net outflow of funds of C$11.03 billion from Canada.
The monthly international securities transaction report offers a gauge on foreign market sentiment toward the Canadian economy, and Canadian investors' take on global prospects. The outlook for Canada has dampened considerably on a pullback in commodity prices, and a failure by non-resource exports to pick up steam and offset a decline in the price of crude, the country's top export. The Bank of Canada cut its benchmark rate on Wednesday by 25 basis points to 0.50%, and downgraded its Canadian growth forecast for 2015 to 1.1% from its previous 1.9% call.