The Canadian dollar fell against its US counterpart today due to the hawkish stance of the Federal Reserve and positive US macroeconomic data. The loonie fared far better against other most-traded currencies.
The greenback got a huge boost from yesterday’s policy announcement from the Federal Reserve. Today’s economic reports released in the United States were mixed, but the market paid attention to the positive ones, driving the US currency even higher.
Prices for crude oil declined during the current trading session, extending yesterday’s huge slump. That was another negative factor for the Canadian dollar.
As for economic releases in Canada itself, the only one was manufacturing sales data, and it was good. The report showed growth by 1.1% in April, which was bigger than forecasts of 0.9% and the previous month’s revised increase by 0.8%. The sales were at the record high level.
USD/CAD was up from 1.3244 to 1.3304 intraday but pulled back to 1.3264 as of 20:30 GMT today. EUR/CAD dropped from 1.4856 to 1.4782, trading near the lowest level since April 27. CAD/JPY jumped from 82.69 to 83.59.
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