« Good Day for the Commodity Currencies! | Home | GBP/AUD Trade Follow-Up! »
Canada Doesn’t Hike, Tries to Talk Down the Loonie!
By Mike Conlon | October 20, 2009
The Canadian dollar (CAD)is taking the biggest hit today as Bank of Canada policy-makers held rates steady at .25%. There has been a lot of speculation that Canada may need to raise rates sooner than later, causing the Loonie to return to its one year highs vs. the greenback. It’s off -1.5% vs. AUD, -1.63% vs. JPY, -1.79% vs. EUR, -2.05% vs. USD. As you can see, a bad day for the Loonie.
But a good day for Bank of Canada policy-makers. They have stepped up their own rhetoric to try to talk-down the strength of the Canadian dollar. They issued a warning that recent Canadian dollar strength will “more than offset” any recent signs of economic growth. As the Loonie has been approaching parity (1=1) with the US dollar, it appears that the BOC wants to halt that progress any way possible.
Will their efforts work? Stay tuned!
To follow the action on CAD live, sign up for a real-time practice account here!
Tags: AUD, bank, canada, dollar, dow, economic, EUR, greenback, Il, jpy, loonie, lot, Mike Conlon, rate, ssi, USD, warning
Topics: What To Look At In The Market | No Comments »