Forex Blog: Currency Trading News & Analysis.

July 14th 2005

Canadian Dollar falls on weak economic data

The Canadian Dollar has hit a minor hurdle in its multi-year rise against the USD. As the corruption scandal subsided, the attention of forex traders turned naturally to economic performance and interest rates, and the news on both fronts ranges from weak to neutral. First, new manufacturing and trade data seem to indicate the Canadian economy is slowing. Economists attributed the decline in exports to the Canadian Dollar’s recent strength, which has rendered many Canadian products uncompetitive on global markets. With regard to interest rates, investors have been expecting a rate hike for quite some time. Commodities are appreciating rapidly, and inflation is rearing its ugly head in resource-rich Canada. However, the Central Bank has not yet responded by raising interest rates. In this rarest of cases, no news is bad news. DailyFX reports:

The currency’s rally was likewise cut short by no change in news from the Bank of Canada. It seems that the markets have priced in expectations of a rate hike and reacted negatively to the absence of change.

Read More: Loonie Loses Ground On BoC Comments And Soft Export Data

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Posted by Adam Kritzer | in Investing & Trading, Politics & Policy | No Comments »

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© 2004 - 2024 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.