After dropping from yesterday’s 10-week high against the US Dollar the ‘Loonie’ was able to rebound in the aftermath of the European Central Bank’s rate decision.
The Canadian Dollar Exchange Rate was in the region of 0.9925 against the US Dollar as of 14:25 GMT
Today the ECB announced a 0.25 per cent rate cut, taking the key interest rate to a record low of 0.5 per cent. The marginal lending rate was also lowered to 1 per cent.
During the press conference which followed the decision ECB President Mario Draghi intimated that the ECB will be watching economic data from the Eurozone and ‘stands ready to act’ if the situation doesn’t improve. Draghi went on to argue that Eurozone nations can’t drift from their plans for deficit reduction and attempt to boost growth by embarking on a borrowing spree, and hinted that negative interest rates could be considered.
He also said that the bank is engaged in a consultation process with ‘European institutions on initiatives to promote a functioning market for asset-backed securities collateralised by loans to non-financial corporations.’
The Canadian currency initially fluctuated after the Federal Reserve’s decision to maintain its current rate of asset purchases, with the intent to adjust policy according to economic needs, but stabilised during the European session.
As one currency analyst highlighted, ‘The Fed opened the door to more easing yesterday, underscoring that central banks will do whatever is necessary to restore a recovery, and now the ECB is on board. One of the central banks that’s least likely to ease is the Bank of Canada, which makes the Canadian Dollar more attractive.’
The ‘Loonie’ was additionally supported by some positive US data. Separate reports showed that the US trade deficit narrowed by more than expected in March while last week’s jobless claims benefits fell to an unexpected 5-year low.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9925 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7531 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6378 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9694 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1708 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5669 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0069 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3264 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8560 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0317 <
(Correct as if 14:25 GMT)
Comments are closed.