Loonie has erased all the gains from the trade optimism

Canadian dollar erased all the gains gained in the previous session on trade headlines. After the US President Trump announced the delay of the additional 10% tariffs on the Chinese imports the market rallied and oil priced advanced supporting the loonie. However, Wednesday came with the disappointing results from China and Europe, weighing on the global risk sentiment and boosting haven currencies. A second-quarter GDP for Eurozone came in line with the expectations, but the Industrial production slowed more-than-expected. China also reported disappointing July Industrial output and Retail sales fueling fears over the global slowdown. The pair broke below the channel trading at January lows. It will test further down to 0.72500.