The Chinese Growth
Though this large North American economy has so far been able to keep itself away from the claws of the global economic crisis to a large extent, it is now showing some clear signs of stress. In Canada, forex traders who have been concerned about the growth of China are not in a happy mood as the service industries in the country advanced at the slowest pace last month since September, 2012. This is indicating that the demand growth in China is gradually slowing down.
Impact on Canadian Market
China’s slower growth rate is having a negative impact on the Canadian market. Canadian Natural Resources slid 2.5 percent to stop at C$31.26 whereas Cenovus slumped to C$31.82 by losing 2.8 percent. Miners in Canada also saw a loss in value. Yamana Gold Inc. dropped by 6.3 percent and arrived at C$14.22, Iamgold Corp. lost 6 percent to stop at C$6.32 and Silver Wheaton Corp. stopped at C$ 31.09 losing 4.7 percent. Agrium arrived at C$105.43 losing C$1.87 after the chairman of the company had sent letters to shareholders to re-elect the current board. Atlantic Power Corp. touched its lowest level since November 2008 as it slid a staggering 17 percent and stopped at C$6.06. As a result of the poor performance of stocks the Standard & Poor’s/TSX Composite Index in Toronto rolled down 0.5 percent or 65.71 points to stop at 12,707.41.
The State of Forex Traders
Though forex traders are not exactly hopeless about the situation a lot of them are feeling uncomfortable as the market is going closer to new highs. Many are of the opinion that there has been a number of market run ups in the last few months and now it is time for a pull back. However, the concern about Chinese growth is not likely to be warded off any time soon and therefore, forex traders in Canadian markets have to experience some uncertain situations for quite some time.
It is to be kept in mind that the global economic crisis is not yet over and as long as such economic uncertainty persists speculation is going to rule the market. Forex traders, therefore, have to be extra careful in making their business decisions because a minor error can yield catastrophic results both is short as well as long run.