Canadian Dollar Hurt by Flaherty’s Comments
The rally of the Canadian dollar was cut short by comments of Finance Minister Jim Flaherty, who indicated that projections for Canada’s economic growth may be revised down. The comments added to general uncertainty on the Forex market that was hurting riskier currencies.
We may have to revise downward somewhat. So far we’re in the same ballpark as we anticipated in the budget.
The comments followed the speech of central bank’s Governor Mark Carney, who also hinted at the possible negative revision of growth forecast.
The general market sentiment was not helping the Canadian currency either. The uncertainty about Europe’s future damp appetite for risk and fundamental data from the United States was mixed.
USD/CAD jumped from 0.9776 to 0.9851 yesterday and remained near that level as of 2:11 GMT today. EUR/CAD traded at 1.2875, near yesterday’s close, after rising on the previous trading session from 1.2826. CAD/JPY fell from 80.68 to 80.41 yesterday, but went somewhat higher to 80.55 today.
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Earlier News About the Canadian Dollar:
- Canadian Dollar Snaps Three-Day Drop (2012-10-18)
- Carney's Speech Makes Canadian Dollar Weak (2012-10-17)
- 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)