The ‘Loonie’ is hovering just above an eight-month low against its US relation as investors prepare for a week that will see the Bank of Canada reveal its interest rate decision and the release of the latest employment data from Canada and the US.
The currency is still suffering from last week’s Gross domestic Product data release which showed that the Canadian economy grew less than expected. It grew by just 0.6% in the fourth quarter of 2012, short of economist predictions of an expansion of 1%.
This week sees the Bank of Canada release its latest interest rate decision on Wednesday and on Friday the markets will see the release of the newest batch of jobs data out of the nation and its biggest trade partner the USA.
Both North American nations are expected to have added jobs in February. Economists are predicting that Canada created an extra 8,000 jobs whilst the US added an extra 160,000 new jobs. If true then the ‘Loonie’ will find support as confidence in the economy will be boosted. However, any gains could be short-lived as this week will see the implementation of the USA’s sequestration budget cuts.
“I expect data out of North America, particularly the U.S., to be more positive, more risk-friendly, and I don’t necessarily see the US Dollar appreciating on the back of that because of the sequester,” said head analyst Dean Popplewell from Oanda Corp. “So that could give the Canadian dollar a risk proxy support, despite a less hawkish Bank of Canada.”
Current Canadian Dollar Exchange Rates
The Canadian Dollar to Euro (CAD/EUR) exchange rate is trading at 0.7476
The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate is trading at 0.6450
The Canadian Dollar to US Dollar (CAD/USD) exchange rate is trading at 0.9717
The Canadian Dollar to Australian Dollar (CAD/AUD) exchange rate is trading at 0.9576
The Canadian Dollar to New Zealand Dollar (CAD/NZD) exchange rate is trading at 1.1814
The Canadian Dollar to Japanese Yen (CAD/JPY) exchange rate is trading at 90.8427
These exchange rates were correct as of 14:30 pm GMT
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