The Canadian dollar started the week with losses against some of its major peers, including the euro and the Japanese yen, and continued to fall today. Monday’s economic data was positive, but it did not help the currency.
The Canadian currency was falling last week, but has been supported by a positive inflation report by the weekend. The current week started with a release of another positive indicator, but this time favorable data was not able to help the loonie.
Reasons for the currency’s weakness remain the same as before: concerns about global growth and low commodity prices (most importantly, prices for crude oil). Under such circumstances, traders prefer to avoid currencies which performance is tied to growth, and the Canadian currency is one of them.
The Bank of Canada will hold a monetary policy meeting on October 22. Analysts believe that there is no reason to expect any change to the current policy.
USD/CAD was up from 1.1283 to 1.2900 as of 00:35 GMT today following a small drop yesterday. EUR/CAD was little changed at the current trading session after rising from 1.4391 to 1.4442 at the previous session. CAD/JPY edged down from 94.72 to 94.60.
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