FX report for the week ending December 9, 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
- As expected, the Bank of Canada left its benchmark interest rate at 0.50% on Wednesday. This decision and subsequent press conference supported the strength of the loonie
- The US dollar dropped to its lowest levels in eight weeks against the Canadian dollar on Friday as the commodity related currency was supported by higher oil prices. Canadian building permits data was also better than expected with a gain of 8.7%, surpassing a forecast of 1.6%
- The US Federal reserve will be the highlight this week, as the interest rate decision is scheduled for release on Wednesday, December 14, 2016
- The USD/CAD pair closed on Friday at 1.3180
EUR and CAD
- The European Central Bank (ECB) maintained its interest rates at 0.00% on Thursday as expected
- The euro remained under pressure against the loonie and other major currencies as the ECB is expected to extend its asset purchase program for an additional nine months
- The loonie was also higher against the euro, with the EUR/CAD declining 1.76% from previous week’s close, to end at 1.3915 on Friday
GBP and CAD
- The sterling started the week higher against the loonie at 1.6865, but was unable to maintain its gains as it weakened for 5 days consecutively to close on Friday at 1.6575 against the loonie
- The Bank of England interest rate meeting on Thursday, December 15, 2016 is the main economic data expected this week. Although it is projected that interest rates will be unchanged, details of the meeting released afterwards could be influential in indicating the direction of future policy
News with Possible Impact on Currencies
Stay informed. Stay Current.