FX report for the week ending January 20, 2017
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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 Bank of Canada (BoC) maintained interest rates at 0.5% on Wednesday as expected. The CAD dropped against the USD after the BOC communicated its willingness to cut interest rates in the near future.
- The US dollar gained against the loonie and other major currencies late Thursday when the Fed chair Yellen indicated that the Central Bank will continue to raise interest rates, but slowly. The US gains continued into early Friday, as all eyes were on President Donald Trump’s inauguration speech.
- The Canadian dollar found some backing on Friday as oil prices continued to climb. However, the loonie’s gains were trimmed as data on retail sales came out much lower than anticipated.
- The USD/CAD pair closed on Friday at 1.3327
EUR and CAD
- The European Central Bank left its minimum bid rate unchanged at 0.00% on Thursday as expected.
- The ECB president Mario Draghi said that “the bank will keep its loose monetary policy unchanged until there’s evidence that core inflation is picking up’”.
- The euro ended the week stronger against the loonie to close at 1.4245 on Friday.
GBP and CAD
- The British pound gained strength against the loonie and other major currencies on Tuesday, following the speech from Prime Minister Theresa May in which she said that her Brexit negotiation strategy would be put to a vote in the Houses of Parliament.
- The sterling ended the week stronger against the loonie to close on Friday at 1.6472
News with Possible Impact on Currencies
Sources: Bank of Canada, Forex Factory, Continental Currency Exchange. Track currencies for yourself with our FREE Rate Watch.
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