The Canadian dollar weakened against its US rival on Thursday, as slumping financial markets and abysmal economic growth in the Great White North weighed on the loonie. How much further will the Canadian dollar fall in heading into the fourth quarter of 2022?

According to Statistics Canada, the gross domestic product (GDP) growth rate edged up just 0.1% in July, unchanged from June. Despite the anemic pace of growth, it was slightly higher than economists’ expectations of -0.1%.

Growth was only seen in 11 of the 20 industrial sectors, with manufacturing, construction, wholesale trade, retail trade, and food services contracting.

The preliminary reading for the August GDP growth rate was flat at 0%, showing that the Canadian economy stalled and the effects of the Bank of Canada’s (BoC) interest rate hikes are seeping into the national economy.

“The economy fared better than anticipated this summer, but the showing still wasn’t much to write home about,” said economist Royce Mendes with Desjardins. “While the data did beat expectations today, the numbers didn’t move the needle enough to see a material market reaction.”

Meanwhile, investors are waiting to see if the global bond market bloodbath will also start being felt in the Canadian bond market. During the Thursday trading session, the benchmark ten-year yield added 3.1 basis points to 3.118%. The one-month bill added three basis points to 3.07%, while the 30-year bond climbed 2.7 basis points to 3.00%.

Energy commodities were red across the board. November West Texas Intermediate (WTI) crude oil futures slipped 0.24% to $81.95 per barrel on the New York Mercantile Exchange. November natural gas futures shed $0.182, or 2.62%, to $6.773 per million British thermal units.

Despite the boom in commodities this year, the loonie has failed to take advantage of the situation.

The USD/CAD currency pair jumped 0.9% to 1.3728, from an opening of 1.3611, at 14:10 GMT on Thursday. The EUR/CAD soared 1.12% to 1.3398, from an opening of 1.3250.