Canadian Dollar Ends Week as Third Weakest Currency

The Canadian currency had a pretty rough week, falling against most of its major peers. And yet it was not the weakest currency during the past week as it was still able to gain on the euro and the New Zealand dollar.
As was expected, the Canadian currency encountered hurdles during this week’s trading. While inflation was better than analysts’ prediction, the surprising interest rate cut from the Bank of Canada and the lackluster performance of crude oil ensured weakness of the currency.
The euro was the weakest currency on the market even though Greece will likely receive the much-needed bailout. The New Zealand dollar was the second weakest due to speculations about a possible reduction of interest rates by the Reserve Bank of New Zealand next week.
Talking about winners of the Forex market, the Great Britain pound demonstrated the best performance with the aid of comments from Mark Carney about a potential rate hike. The US dollar was a close second also due to the prospects for tighter monetary policy in the near future.
USD/CAD climbed 2.1 percent from 1.2701 to 1.2972 — the highest weekly close since September 2004. EUR/CAD ticked down from 1.4094 to 1.4047 during the week. NZD/CAD declined from 0.8507 to 0.8467. GBP/CAD rallied from 2.8 percent from 1.9688 to 2.0238 — another multi-year highest weekly close.

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