The Canadian Dollar has weakened to its lowest level since July against its US counterpart after policy makers in the USA sought to avoid budget cuts, known as sequestration, due to begin next month.
The Canadian currency was also weakened by a dip in the price of Crude oil and as risk sentiment fell after European Central Bank President Mario Draghi told European lawmakers that he expects economic weakness in early 2013 to be followed by a gradual recovery later in the year.
The latest Canadian wholesale sales data also proved to be a drag after it came in at a lower-than- expected level. Economists had predicted that the figure would come in at -0.4%, instead the actual figure was -0.9%.
Canada’s dollar is “quite weak,” said Camilla Sutton, head of currency strategy at the Bank of Nova Scotia. “Anything that’s negative for U.S. gross domestic product is negative for Canada.”
Canadian Dollar traders should be aware of tomorrow’s release of the latest US Federal Reserve minutes for January. Any indication that the US economy is slowing down or signs that President Obama will not be able to successfully negotiate the upcoming new round of budget talks will almost certainly send the Canadian Dollar further downwards.
Against the Euro the ‘Loonie’ fell to its lowest level since the 13th of February due to a better-than- expected German ZEW economic sentiment index data.
Current CAD Exchange Rates
The Canadian Dollar to Euro exchange rate is currently trading at 0.7398
The Canadian Dollar to Pound Sterling exchange rate is currently trading at 0.6378
The Canadian Dollar to US Dollar exchange rate is currently trading at 0.9879
The Canadian Dollar to Australian Dollar exchange rate is currently trading at 0.9557
The Canadian Dollar to New Zealand Dollar exchange rate is currently trading at 1.1688
The Canadian Dollar to Japanese Yen exchange rate is currently trading at 92.4002
These exchange rates were correct as of 14:25 pm GMT
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