The Canadian Dollar resumed its downward trend by tumbling further against many of its peers on Wednesday after Bank of Canada governor Stephen Poloz hinted that the Central Bank could implement a cut to interest rates in the near future in a bid to stave off deflation.
“We’re through everything we’ve seen in the last several years. The market is looking forward to weak CPI numbers and the Bank of Canada responding, as was hinted in the Poloz interview,” said the head of foreign exchange strategy at the Bank of Montreal in an interview with Bloomberg.
Against its US relation the currency fell below C$1.08 per US Dollar for the first time in over three years after a report showed that the US private sector created more jobs than had been forecast in December. The increase was the highest seen since November 2012. The USD/CAD exchange rate is now its strongest level since May 2010.
Aside from the comments made by the BOC governor the ‘Loonie’ was weakened by yesterday’s Ivey Purchasing Managers Index which dropped to a 35 month low by slipping unexpectedly to 46.3. Any figure below 50 indicates contraction.
Also adding to the currency’s weakness was a separate report which showed that the nation’s trade deficit widened by nine times what was forecast by economists.
The Pound managed to soar higher against the majority of its most traded peers after speculation rose that the UK economy will outperform its European rivals in 2014.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9254 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.6805 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5628 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0347 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1141 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.7762 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0804 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4696 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8973 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9661 >
(Correct as of 15:00 pm GMT)
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