Canadian Dollar Heading for Weekly Decline Despite Today’s Gains
The Canadian dollar rose today as the Canadian trade balance deficit shrank and the consumer confidence in the US, the biggest Canada’s trading partner, improved. Still, the currency is heading for the weekly decline.
Canada’s trade balance deficit shrank from C$2.3 billion in September to C$1.7 billion in October. The median forecast was C$2.0 billion. The preliminary University of Michigan consumer sentiment index rose from 71.6 to 74.2. The analysts’ estimate was 72.4.
The currency still poised for the weekly drop. January futures on crude oil, which accounts for 21 percent of the Bank of Canada’s Commodity Price Index, slipped as much as 1.1 percent today to $87.42 per barrel in New York. The Bank of Canada kept the interest rates unchanged at 1 percent on December 7th and may refrain from the rates hikes for some time.
USD/CAD fell from 1.0160 to 1.0086 as of 19:03 GMT today. EUR/CAD dropped from 1.3375 to 1.3348.
If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.
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Bank of Canada, Canada, Consumer Confidence, Crude Oil, Dollar, EUR/CAD, Interest Rates, Trade Balance, USD/CAD
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Earlier News About the Canadian Dollar:
- Optimistic Outlook for US Economy Bolsters Canadian Dollar (2010-12-08)
- Canadian Dollar Pares Losses (2010-12-08)
- No More Rates Hike Expected — USD/CAD Goes Up (2010-12-07)
- Canadian Dollar Weakened By Poor US & Canadian Employment (2010-12-04)
- Loonie Climbs vs. Greenback as Global Economic Outlook Brightens (2010-12-02)
1 Comment
What is the expected immediate result to the Canadian Dollar, the Canadian Real Estate market by value of hard assets, and the Canadian Stock Market – if the much-bantered about US Dollar value decline is severely impacted by a change in the Reserve Currency status at some point onward?