The Canadian dollar rallied against its US counterpart after the dovish comments from the Federal Reserve’s head sent the greenback tumbling. The loonie had less success against its other major rivals due to the crash of crude oil prices.
The speech from Janet Yellen basically squashed hopes for an April interest rate hike and made some analysts lower the outlook for rate increases this year from two to just one hike. Unsurprisingly, this led to a rally of virtually all currencies versus the US dollar.
At the same time, the drop of crude oil affected the loonie in a negative way. The Canadian currency tied to the performance of crude, meaning that it followed oil prices in decline today.
As for economic data from Canada, it was bad with the bigger-than-expected drop of industrial product and raw materials price indexes.
USD/CAD sank 1% from 1.3186 to 1.3055 as of 21:51 GMT today. EUR/CAD traded at 1.4741 after opening at 1.4760. CAD/JPY was at about 86.26 after it opened at 86.01.
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