Canadian Dollar Pluges on Dovish BoC and FOMC Level Decision – Forex News

Some Canadian dollar bills

The Canadian dollar was at a huge loss today as investors dug up the sad remarks yesterday with the Bank of Canada over the value of the currency. The USD / CAD currency pair today rose higher when investors sold the loonie after realizing that the Canadian central bank was very uncomfortable with its strength.

The USD / CAD currency pair today rallied from a low opening level of 1.2699 to a high of 1.2790 in the American market following the decision to raise the US dollar FOMC interest rate.

The currency pair went higher in a delayed response to comments from Tiff Macklem, Governor of the Bank of Canada regarding the loonie. Macklem said the strength of the Canadian dollar is hurting the country’s export competitiveness to the U.S. He pointed out that the bank was considering additional cash discount measures such as lower interest rates to limit the value of the loonie. The release of Canadian inflation data for November had little effect. According to Statistics Canada, the country’s inflation rose 0.1% compared to consensus estimates of a flat reading.

The currency pair went to its daily highs after the FOMC interest rate decision after the Fed maintained its current levels and pledged to continue buying $ 120 billion worth of bonds each month. However, the Fed did not extend the duration of the program limiting the benefits of the U.S. Dollar Index.

Canada’s earnings data tomorrow are likely to have an impact on the future performance of the currency frontier.

The USD / CAD currency pair was trading at 1.2737 as of 20:27 GMT after accumulating from a low of 1.2699. The CAD / JPY currency pair was trading at 81.19 after falling from a high of 81.62.

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