Canadian economic releases disappointed today, and with the dollar dominating everything in sight, it’s little surprise that the loonie is lower.
Earlier today, Statistics Canada released inflation numbers that came in below expectations. Analysts had expected to see an increase of 0.4 per cent from April to May, but the number came in at 0.2 per cent instead. Matters also aren’t being helped by the fact that retail sales, while edging up, were still weaker than expected.
With sights looming that the Canadian economy might be stuck in its own funk, many are wondering if Stephen Poloz will be leading the Bank of Canada to cut interest rates in an effort to try to keep things afloat.
But the news that is still dominating the currency markets is the Federal Reserve‘s announcement earlier this week that it is just about ready to taper its economic stimulus efforts. The news has thrown the markets into chaos and boosted the performance of the US dollar against almost all of its counterparts — and that includes the loonie.
Loonie is struggling as oil prices and stocks drop, and as the greenback strengthens. Only the euro is down against the Canadian dollar.
At 16:21 GMT USD/CAD is up to 1.0469 from the open at 1.0386. EUR/CAD is down to 1.3728 from the open at 1.3730. GBP/CAD is up to 1.6112 from the open at 1.6110.
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