The Canadian dollar slumped today, touching the lowest level since March against its US peer, as inflation slowed last month, decreasing probability of an interest rate hike from the Bank of Canada.
The Consumer Price Index rose 0.4 percent in April from a year ago. It was the slowest growth since October 2009. Consumer prices fell 0.2 percent, month-on-month.
The BoC was talking about raising interest rates for some time, unique among central banks of developed nations in this regard. Recent fundamental data did not warrant tighter monetary policy and such talks hushed.
USD/CAD surged from 1.0192 to close at 1.0290 today, while its daily high of 1.0311 was strongest since March 8. EUR/CAD advanced from 1.3129 to 1.3199. CAD/JPY went down from 100.25 to 99.35 before rebounding and closing at 100.34.
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The Canadian dollar demonstrated a big drop against its US counterpart yesterday and continued to fell today on concerns that Canada’s economic growth will trail that of the United States. The currency was also weak against other majors, including the euro and the yen.
The US economy is expected to expand 2 percent in 2013. At the same time, analysts believe that the Canadian economic will grow just 1.6 percent. Such outlook was not very supportive for the loonie. Yesterday’s drop of crude oil did not help the currency either.
Not all economists are concerned about the loonie’s drop. The currency was rising previously and some specialists believe that the rally may resume after a small correction.
USD/CAD rose from 1.0178 to 1.0186 and EUR/CAD advanced from 1.3149 to 1.3174 as of 1:31 GMT today. CAD/JPY went down from 100.56 to 100.23.
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Canadian dollar is heading lower today, dropping along with other commodity currencies. With commodities plunging, it is little surprise that currencies like the loonie are losing ground today.
Commodity currencies are struggling today as gold and oil drop in trading. The Canadian dollar is losing ground along with other commodity currencies. Oil, a major export for Canada, and a major support for the loonie, is down more than two dollars a barrel today.
As a result, the Canadian dollar is dropping against the US dollar and other major counterparts. It’s also not helping that there are still questions about the Canadian economy. Worries about a housing bubble, as well as uncertainty over what happens with Mark Carney leaving the Bank of Canada, are also factors weighing on the loonie.
It will be interesting to see what happens next with the Canadian dollar. The loonie was termed an official reserve currency earlier this year, but so far that designation doesn’t seem to be helping a whole lot.
At 14:09 GMT USD/CAD is higher, rising to 1.0125 from the open at 1.0068. EUR/CAD is also higher, heading up to 1.3165 from the open at 1.3133. GBP/CAD is moving higher, gaining to 1.5587 from the open at 1.5555. CAD/JPY is higher, thanks to yen weakness, moving up to 100.3110 from the open at 99.9030.
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Canadian employment growth was below forecasts, making the Canadian dollar close lower against its US peer. At the same time, the currency closed flat against the euro and higher versus the Japanese yen.
Canadian employers added 12,500 jobs in April from March, when employment shrank as much as 54,500. The consensus forecast was at 14,800. The unemployment rate stayed at 7.2 percent as it was expected.
The Canadian currency, which was already depressed by the drop of commodities, fell after the report. The loonie managed to gain against the yen, which was lower against all major currencies.
USD/CAD went up from 1.0070 to the intraday high of 1.0151 and closed at 1.0105. EUR/CAD closed flat at 1.3125. Meanwhile, CAD/JPY advanced from 100.09 to 100.52 and its intraday maximum was of 100.95 was highest since September 2008.
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The Canadian dollar was rallying against most major currencies at the beginning of this week, but it fell against the US dollar and the Japanese yen today. The currency traded sideways versus the euro.
Fundamentals were not bad for the Canadian currency at the start of this week as stocks and commodities rallied. The Standard & Poor’s 500 Index of shares climbed 0.5 percent. Crude oil, Canada’s major export, advanced 0.9 percent to $ 88.76 per barrel.
The currency remained under pressure though as many commodities, especially metals, were rather weak despite the recent bounce. Gold demonstrated the biggest daily drop in 33 years in 2013 and did not completely recover after the slump.
USD/CAD rose from 1.0254 to 1.0264 and CAD/JPY declined from 96.72 to 96.28 as of 3:17 GMT today. EUR/CAD was flat at 1.3398.
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Canadian dollar is getting a boost today as Forex traders look for higher yields. Particularly, loonie is benefitting from flows out of Japan.
Canadian dollar is being favored right now as Forex traders attempt to capture the benefits of higher-yielding commodity currencies. Against its major counterparts, the loonie is heading higher. Along with the Down Under currencies, the Canadian dollar is seeing some solid progress.
The latest stimulus announcement from the Bank of Japan has many wondering where it will all end up, and that is sending flows toward the Canadian dollar. On top of that, loonie has a higher interest rate right now. When compared with the pound and the US dollar, the Canadian dollar has an attractive yield. It’s not even a bad yield compared to the euro, since there have been difficulties in the eurozone, and there is speculation that the ECB will have to cut rates at some point.
So, for now, the loonie, with a stable economic showing, and with a higher yield, looks attractive to many Forex traders.
At 15:51 GMT USD/CAD is down to 1.0153 from the open at 1.0164. EUR/CAD is down to 1.3259 from the open at 1.3297. GBP/CAD is down to 1.5548 from the open at 1.5573. CAD/JPY is up to 98.1435 from the open at 97.4360.
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Canadian dollar is surging against its European counterparts today, heading higher as the latest news on the economy helps the loonie. However, the Canadian dollar has fallen against the US dollar as uncertainty returns to the markets.
Once again, it’s a time of confusion for Forex traders. Earlier, the Canadian dollar struggled, but the latest news from Statistics Canada, showing that consumer prices rose 1.2 per cent in February, is helping the loonie against its European counterparts.
Canadian dollar was also higher against the US dollar earlier, but that was before concern about the eurozone once again seized Forex traders and investors. With the details of the Cyprus deal coming out, and with Italy back in the news, concerns about whether or not the eurozone can handle the problems in the periphery are rising.
With risk appetite fading, high beta currencies like the loonie are down against the US dollar. (Lower oil prices also weigh against the Canadian dollar against the US dollar.) However, with CPI indicating that the Canadian economy isn’t in too bad of shape, loonie is seeing gains against European currencies with struggling economies.
At 14:18 GMT USD/CAD is up to 1.0174 from the open at 1.0164. EUR/CAD is down to 1.2985 from the open at 1.3066. GBP/CAD is also lower, dropping to 1.5371 from the open at 1.5407.
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The Canadian dollar advanced today as crude oil gained amid the positive market sentiment caused by the bailout deal for Cyprus. The currency trimmed its gains and fell against the yen as optimism was slowly going away from the Forex market.
Futures for crude oil went up 0.7 percent to $ 94.40 per barrel after reaching $ 95.65, the highest level since February 20. Other markets also felt optimism, boosting risk-related currencies. The stock market followed the suit initially, but submitted to the downside pressure later as the Standard & Poor’s 500 Index of shares dropped 0.6 percent, erasing the 0.5 percent advance.
The Canadian currency also rose initially, but lost most of its gains against the greenback and dropped versus the yen. At the same time, the loonie was gaining on the euro almost for the whole day even amid the initial optimism.
USD/CAD went down from 1.0231 to 1.0211 as of 19:53 GMT today, while the daily low was at 1.0186. CAD/JPY fell from 92.20 to 92.10 after rising from 93.11. Meanwhile, EUR/CAD dropped from 1.3247 to 1.3129.
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Earlier News About the Canadian Dollar:
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The Canadian dollar advanced today as crude oil gained amid the positive market sentiment caused by the bailout deal for Cyprus. The currency trimmed its gains and fell against the yen as optimism was slowly going away from the Forex market.
Futures for crude oil went up 0.7 percent to $ 94.40 per barrel after reaching $ 95.65, the highest level since February 20. Other markets also felt optimism, boosting risk-related currencies. The stock market followed the suit initially, but submitted to the downside pressure later as the Standard & Poor’s 500 Index of shares dropped 0.6 percent, erasing the 0.5 percent advance.
The Canadian currency also rose initially, but lost most of its gains against the greenback and dropped versus the yen. At the same time, the loonie was gaining on the euro almost for the whole day even amid the initial optimism.
USD/CAD went down from 1.0231 to 1.0211 as of 19:53 GMT today, while the daily low was at 1.0186. CAD/JPY fell from 92.20 to 92.10 after rising from 93.11. Meanwhile, EUR/CAD dropped from 1.3247 to 1.3129.
If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.
Earlier News About the Canadian Dollar:
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