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Foreign Currency Forecast for Canadian Dollar plus Exchange Rate News: ‘Loonie’ drops on G-7 currency pledge

Canadian Dollars

The Canadian Dollar Exchange Rate was in the region of 0.9956 against the US Dollar as of 15:00 pm GMT

Although perhaps lacking the momentum of a luge on the ice, the Canadian Dollar’s downward trend continued today as the G-7 responded to concerns of an imminent currency war with a provocative statement.

At the weekend the ‘Loonie’ fell below parity with its American counterpart as a result of far worse-than-forecast housing starts and employment figures for Canada, and today the currency has lost ground against several of its most traded counterparts as well.

The Group of Seven Nations (made up of the UK, US, Japan, Germany, France, Canada and Italy) vowed today that its members wouldn’t attempt to weaken their currencies in order to enhance the economic growth of their individual nations.

Interestingly the statement made no specific mention of Japan, even though the Yen has lost 8 per cent this year on the back of governmental promises to implement additional stimulus specifically in order to lower the currency. At the close of last month Canadian finance minister Jim Flaherty expressed his intention of raising his concerns regarding the rapid weakening of the Yen with his Japanese counterpart.

After today’s news was released the managing director of FX with the National Bank of Canada Jack Spitz asserted: ‘The discussion over competitive devaluation has increased in political importance. It will continue to feature prominently in the conversation going forward, which adds to the headline risk, which speaks to added volatility, and volatility typically correlates to a weaker Canadian Dollar.’

Elsewhere, the British Pound experienced notable declines against several of its peers as the odds of the Bank of England slashing growth forecasts for the UK tomorrow increase.

The Euro meanwhile broadly strengthened as Luxembourg Prime Minister Jean-Claude Junker released a statement in which he claimed that the common currency had no ‘optimal rate’.

Current Canadian Dollar exchange rates

The Canadian Dollar to Euro exchange rate is currently trading at 0.7416

The Canadian Dollar to Pound Sterling exchange rate is currently trading at 0.6388

The Canadian Dollar to US Dollar exchange rate is currently trading at 0.9956

The Canadian Dollar to Australian Dollar exchange rate is currently trading at 0.9693

The Canadian Dollar to New Zealand Dollar exchange rate is currently trading at 1.1948

The Canadian Dollar to Emirati Dirham exchange rate is currently trading at 3.6481

The Canadian Dollar to Swiss Franc is currently trading at 0.9141

The Canadian Dollar to Japanese Yen exchange rate is currently trading at 93.4488

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