The loonie is still struggling against the greenback today, finding it difficult to regain lost ground following yesterday’s announcement from the US Federal Reserve. While the Canadian dollar is gaining against its European counterparts, helped by US dollar strength, it continues to drop against the greenback.
Yesterday, Federal Reserve Chair Janet Yellen made an announcement about the taper and about interest rates. She introduced a definite timetable for ending the Fed’s bond asset purchase program and suggested interest rates would rise soon thereafter. The news meant a major hit to the loonie, which dropped to its lowest level against the greenback in years.
Today, the Canadian dollar is still struggling against the US dollar, although it is gaining against European currencies as the greenback’s strength against all comers continues to dominate the Forex market.
There are hopes that the loonie will stabilize during the second half of the year, and into 2015, but, for now, there are expectations of a volatile Canadian dollar, and one that is weak against the United States dollar.
At 13:17 GMT USD/CAD is moving higher, gaining to 1.2163 from the open at 1.1238. EUR/CAD is lower, though, dropping to 1.5500 from the open at 1.5546. GBP/CAD is also lower, falling to 1.8575 from the open at 1.8591.
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