Canadian dollar falls as ECB hawks spook investors

The Canadian dollar fell markedly against the stronger U.S. currency on Thursday. A flurry of interest rate hikes has affected sentiment and the Canadian real estate market keeps on weakening.

The Canadian dollar fell 0.9% to 1.3665 per U.S. dollar, approaching its weakest level since early November.

Eric Theoret, global macro strategist at Manulife Investment Management, said the market reaction to the hawkish ECB meeting was negative. This led to a general aversion to risk and a strengthening of the U.S. dollar.

The US dollar rose against a basket of major currencies. At the same time, the indices of the world stock markets and Canadian oil prices fell.

The ECB slowed the pace of interest rate hikes. However, the bank representatives added there will be another significant tightening soon. This statement was a response to a hawkish outlook by the Fed as the U.S. raised rates.

Canadian home sales fell 3.3% in November from the previous month. In addition, the average price declined 12% year-over-year.