The Canadian Dollar continues to trade in the region of an 8-month low against its American rival but could rebound if Fed Chairman Ben Bernanke gives a dovish testimony.
The Canadian Dollar Exchange Rate was in the region of 0.9754 against the US Dollar as of 14:30 pm GMT
The ongoing horsemeat scandal (or horse-gate as it is referred to by some) might be causing drama in Europe, but in Canada it’s causing waves of a different kind. In one of life’s ironic twists it’s caused a huge surge of interest in the unusual meat, boosting a Canadian industry that activists have spent years attempting to shut down. According to the chairman of the Horse Welfare Alliance of Canada, since horse-gate ‘a lot more people are trying horsemeat. People are inquisitive and they say, “Well, what’s wrong with it? Let me try it.”
Apparently a similar phenomenon occurred last year with shark-fin soup after many Canadian cities tried to ban diners from getting their jaws (sorry) around the meal.
Perhaps this surge of interest in horse meat could provide a welcome boost to the Canadian economy, as the latest data certainly seems to suggest its struggling in other areas.
Housing, manufacturing, employment and wholesale sales figures have all disappointed in recent weeks. This, when added to fluctuating commodity prices, has triggered widespread declines in the Canadian Dollar since the start of the year.
Yesterday the ‘Loonie’ posted a seventh consecutive day of losses against its American counterpart, conceding ground as a result of the inconclusive Italian election and the threat it poses to economic recovery in the Eurozone.
The currency continued to trade below parity with the US Dollar, and in the region of an 8-month low. The ‘Loonie’ was able to record a modest advance on a broadly softening Euro.
Although several pieces of Canadian data, including Thursday’s Raw Material Price Index and Current Account/Industrial Product Price figures, plus Friday’s more volatile 4Q GDP statistics are likely to cause ‘Loonie’ movement in the days ahead, today investors are focusing on news from the US.
The Canadian Dollar has experienced slight fluctuations but is relatively unchanged prior to Federal Reserve Chairman Ben Bernanke’s address to congress.
Bernanke’s testimony (due to get underway at 10 am EST) is widely expected to include commentary on the current economic conditions in the US. Bernanke has previously pledged himself as committed to continuing to boost the economy through bond purchases until substantial improvements to the labour market can be seen.
As David Tulk, Toronto-Dominion Bank’s chief macro strategist, states: ‘We’re waiting for Chairman Bernanke to speak. We might see a bit of a consolidation and a bit of a better day for the Canadian Dollar if Bernanke does sound more dovish, but the trend at this point is to see a weaker Canadian Dollar and it’s hard at this point to get in front of that momentum move.’
So far this year the Canadian Dollar has lost roughly 2 US cents.
Current Canadian Dollar Exchange Rates
The Canadian Dollar to Euro (CAD/EUR) exchange rate is trading at 0.7460
The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate is trading at 0.6437
The Canadian Dollar to US Dollar (CAD/USD) exchange rate is trading at 0.9754
The Canadian Dollar to Australian Dollar (CAD/AUD) exchange rate is trading at 0.9518
The Canadian Dollar to New Zealand Dollar (CAD/NZD) exchange rate is trading at 1.1705
The Canadian Dollar to Japanese Yen (CAD/JPY) exchange rate is trading at 89.7201
These exchange rates were correct as of 14:30 pm GMT
Comments are closed.