Canadian Dollar Rises on Interest Rate Speculation
Canadian dollar is getting a boost today, rising as Forex traders await the next interest rate announcement from the Bank of Canada.
The Bank of Canada is expected to leave its key benchmark at one per cent, and there isn’t expected to be any big news about future intentions for the rate. Indeed, some think that there won’t be any change in Canadian rate for at least another 12 months.
This holding steady in the face of global economic weakness is helping the loonie a little bit. The Canadian economy is considered to be one of the better performing economies since the 2008 financial crisis, and that is giving the loonie an edge.
Canadian dollar is also getting help, particularly against the US dollar, as risk appetite makes a small appearance. Emerging markets are getting a boost today, and that helps commodity currencies like the loonie. Additionally, the Canadian dollar is still getting a little help from its new official status as a reserve currency, something the IMF is promoting at the beginning of 2013.
At 14:20 GMT USD/CAD is down to 0.9927 from the open at 0.9951. GBP/CAD is also a little bit lower, dropping to 1.6000 from the open at 1.6012. EUR/CAD is a little higher, though, rising to 1.2998 from the open at 1.2986.
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Earlier News About the Canadian Dollar:
- EUR/CAD Posts Weekly Gain, USD/CAD & CAD/JPY Barely Changed (2012-12-01)
- Loonie Pares Losses on New Fiscal Cliff Hopes (2012-11-29)
- Canadian Dollar Erases Gains amid Fears of US Fiscal Cliff (2012-11-28)
- Canadian Dollar Falls After Carney Appointed as Head of BoE (2012-11-27)
- Loonie Closes at Highest Since April vs. Greenback (2012-11-24)