FX report for the week ending October 21, 2016
It’s time for another Rate Tracker from theCurrent! Every Monday 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 loonie started the week stronger against the USD, as the Bank of Canada (BoC) left its overnight rate unchanged on Wednesday at 0.5%, in line with market expectations. The loonie remained supported on Wednesday by a rise in oil prices
- However, the loonie lost all gains made against USD by the end of the week, as expectations for a US rate hike by December and positive data out of the US continued to support the US dollar, while disappointing data from Canada did not help the loonie
- The USD/CAD pair ended the week at 1.3327
EUR and CAD
- As expected, the European Central Bank maintained its interest rate at 0.00%. The European Central Bank President Mario Draghi said on Thursday that an adjustment to the bank’s stimulus program could come in December and that its assessment would benefit from new economic projections to be drawn up by ECB forecasters
- The euro fell against the Canadian dollar at the start of the week but was able to trim its losses to close the week at 1.4501
GBP and CAD
- The sterling regained strong against the loonie at the end of the week as Canadian data on Friday came in well below expectations, with the GBP/CAD pair closing the week at 1.6290
- News out of the UK next week is the GDP data which is scheduled for release on October 27, 2016
News with Possible Impact on Currencies
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