The Canadian dollar today consolidated gains made against its US counterpart yesterday after the BoC rate hike decision. The USD/CAD pair tested new lows after the release of disappointing US jobless claims data and weak Canadian building permits data early in the North American session.
The USD/CAD pair lost over 110 points at the height of its decline as the loonie gained steadily against the greenback throughout today’s session.
The Canadian dollar consolidated the gains made against the US dollar during yesterday’s session after the Bank of Canada raised interest rates. The loonie regained all the ground recovered by the greenback after the major slump witnessed yesterday. The weak building permits data released by Statistics Canada earlier today could not deter the loonie’s rally. The housing permits recorded a 3.5% decline as opposed to the expected 1.5% decline. The loonie as also boosted by stronger crude oil prices as tracked by the West Texas Intermediate, which was trading above 49.00 for most of today’s session.
The greenback was weaker against the loonie for most of today’s session, as tracked by the US Dollar Index, which hit a record low of 91.41 earlier today. The release of disappointing jobless claims data by the Department of Labor also contributed to the pair’s decline.
The currency pair’s future performance is likely to be affected by the release of Canada’s unemployment rate and US wholesale inventories, both scheduled for tomorrow.
The USD/CAD currency pair was trading at 1.2137 as at 17:24 GMT having dropped from its opening high of 1.2241. The CAD/JPY pair was trading at 89.38 having rallied from a low of 88.99 earlier today.
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