Carney’s Speech Makes Canadian Dollar Weak
The Canadian dollar fell yesterday and maintained the losses today as the speech of Mark Carney, Bank of Canada’s Governor, caused speculations that the central bank will refrain from an interest rate hike. The currency reached the lowest level in more than three months against the euro.
The last Carney’s speech was much less hawkish that the previous ones. That made traders worried. Previously, Governor’s comments were bullish for the loonie and another increase of interest rates was priced in. It does not look impossible now that a rate hike can be delayed.
As for the bit of good news, manufacturing sales beat forecasts. The sales jumped 1.5 percent in August, while just a small increase by 0.3 percent was predicted by analysts.
USD/CAD rose from 0.9804 to 0.9864 yesterday and remained near that level today. CAD/JPY declined from 79.92 to 79.84 as of 1:57 GMT today. EUR/CAD climbed from 1.2876 to 1.2921 and touched the high of 1.2936 — the highest since June 29.
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Earlier News About the Canadian Dollar:
- Canadian Dollar Gains Ground on Better than Expected US Data (2012-10-15)
- Canadian Dollar Climbs After Trade Deficit Narrows (2012-10-11)
- CAD Stronger vs. Greenback, Down vs. USD & JPY (2012-10-09)
- Loonie Drops against Greenback, Gains against European Currencies (2012-10-08)
- Good Employment in US & Canada Pushes Loonie Higher (2012-10-05)