FX report for the week ending December 16, 2016
It’s time for another Rate Tracker from theCurrent! Every week we’ll provide charts and information giving you a quick rundown of how the Canadian dollar fared against three of the world’s most important currencies – the US dollar, the euro, and the pound sterling. You can also find important news and other events that could affect the dollar in an easy to read table. We hope this will help connect you even more to Continental and the wide world of foreign exchange. Enjoy!
USD and CAD
- The Canadian dollar weakened against the US dollar on Wednesday, after the US Federal Reserve decided to raise interest rates by 25 basis points and estimated three more hikes for 2017.
- The US dollar was also supported after the unemployment claims reported by the US labor department fell to 254,000 from the previous 258,000.
- The loonie was further affected by a drop in oil prices and the manufacturing sales data showed a drop of 0.8% which was worse than expected.
- The USD/CAD pair closed on Friday at 1.3344.
EUR and CAD
- The euro seems to have stabilized against the loonie, following a session of weakness due to fears of rising political uncertainty and risk in the eurozone.
- EUR/CAD started the week at 1.3937, and the pair closed on Friday at 1.3934. The eurozone showed steady inflationary growth at 0.6% on Friday.
- The main event for the euro this week is the German Ifo Business Climate Index, which is released on December 19, 2016.
GBP and CAD
- The Bank of England decided to keep its interest rates at a record low of 0.25% on Thursday.
- The British pound gained momentum against the Canadian dollar at the start of the week, and it was able to maintain its gains as of Friday, with the GBP/CAD pair closing at 1.6655.
- The fall in oil prices allowed the sterling the chance to recover some lost ground against the loonie last week.
- Economic release out of the UK this week is the Current account and final GDP data which is scheduled for release on December 23, 2016.
News with Possible Impact on Currencies
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