The Canadian dollar fell today before the meeting of the Bank of Canada policy makers as the central bank is expected to keep the interest rates unchanged and after commodities retreated.
The BoC will keep its overnight rates unchanged at 1 percent, according to forecast of analysts. Canada was first country among the Group of Seven to raise the interest rates and was raising the rates for some time, but now Canada’s economy doesn’t look healthy enough for interest rates hikes.
Crude oil fell after the International Monetary fund lowered growth forecast for the US and Japan, causing the speculation that demand for fuel will decrease. May contract for crude delivery slipped as much as 1.8 percent to $110.75 per barrel in New York. Gold was also fell on the forecast as slower growth weakens inflation pressure. June futures for gold delivery fell 0.5 percent to $1,467.40 per ounce. Raw materials, including gold and oil, makes up about half of Canada’s export revenue.
USD/CAD rose from 0.9565 to 0.9600 as of 6:09 GMT today, following the advance to 0.9636, while EUR/CAD dropped from 88.38 to 86.71 before trading at 87.35.
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