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.

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