Crude oil lows and economic worries kept the ‘Loonie’ trading close to its weakest level for eight-months.
The Canadian Dollar Exchange Rate was in the region of 0.9749 against the US Dollar as of 09:41 am GMT
The ‘Loonie’ has now been trading below parity with its American rival since January, and several factors kept the Canadian currency trading within the region of an eight-month low yesterday.
Firstly, investors are remaining cautious prior to tomorrow’s Bank of Canada rate decision.
Although the central bank is largely expected to hold rates at their current level, the statement which will be released alongside the decision will be of interest given the signs of economic slowdown recorded in Canada lately.
As market analyst Joe Manimbo asserts: ‘If the statements were to sound increasingly dovish, that tends to see the Loonie come under renewed pressure. I would suspect a sideways Canadian Dollar in the run-up to the Bank of Canada meeting’.
The benchmark interest rate has held steady at 1 per cent since the third quarter of 2010.
Secondly, Canada’s most important export – crude oil – fell to a ten-week low, shedding 1.5 per cent and hitting $89.33 a barrel.
Data out of China also had an adverse affect on the Canadian Dollar. News that China’s non-manufacturing PMI had slid from 56.2 to 54.5 in February caused the commodity and export-driven Loonie to fall against several of its most traded peers.
Adam Button, a Canada-based currency analyst, commented: ‘Traders are finding it easy to sell the Canadian Dollar on any negative news or any geopolitical hiccup. And when there is good news, the Canadian Dollar’s rallies are minimal’.
This theory may be put to the test on Friday as Canadian employment figures are largely forecast to show improvement. Economists have estimated that the Canadian economy added 8,000 jobs in February.
Current Canadian Dollar Exchange Rates
The Canadian Dollar to Euro (CAD/EUR) exchange rate is trading at 0.7472
The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate is trading at 0.6443
The Canadian Dollar to US Dollar (CAD/USD) exchange rate is trading at 0.9749
The Canadian Dollar to Australian Dollar (CAD/AUD) exchange rate is trading at 0.9521
The Canadian Dollar to New Zealand Dollar (CAD/NZD) exchange rate is trading at 1.1773
The Canadian Dollar to Japanese Yen (CAD/JPY) exchange rate is trading at 90.7478
These exchange rates were correct as of 09:41 am GMT
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