The Canadia dollar was on a losing streak today as investors digested yesterday’s dovish comments by the Bank of Canada regarding the currency’s value. The USD/CAD currency pair today rallied higher as investors sold the loonie after realising that Canada’s central bank was very uncomfortable with its strength.
The Canadian dollar weakened against its US peer to close out the trading week, with energy prices and producer prices coming into focus. The loonie is still on track to record a modest weekly gain against the greenback, but its overall 2020 performance in the foreign exchange markets has been remarkable.
The Sterling pound today fell against the US dollar following dovish speeches from Bank of England policymakers regarding the British economy and monetary policy. The GBP/USD currency pair kept falling despite the release of weak US jobs data as markets interpreted the BoE’s willingness to take extra easing measures negatively.
The New Zealand dollar was the strongest among the most-traded currencies on the Forex market today despite the outlook for additional monetary easing from New Zealand’s central bank. Domestic macroeconomic data was favorable but seems to provide no noticeable boost to the currency.
The Chinese yuan is continuing its gains against the US dollar to kick off the trading week. The yuan’s strength was buoyed by the central bank pumping more liquidity into the system and leaving interest rates unchanged for the fourth consecutive month. After breaking below the seven against the greenback, the yuan has been steadily testing 6.9. How much better can it get for the currency?
The British pound is rising against many of its currency rivals on Thursday after the central bank left interest rates and its aggressive asset-buying program unchanged. But while the decision to hold things steady was widely expected, many analysts are combing through the Bank of England (BoE) head’s remarks that subzero interest rates are in the institution’s “toolbox.”
The Sterling pound today spiked higher shortly after the Bank of England left its lending rate unchanged and increased its stimulus program by £100 billion as expected. However, the GBP/USD currency pair’s rally was short-lived as the pair quickly headed lower as investor risk appetite faded in the face of rising coronavirus infections globally.
The euro is strengthening against its currency rivals on Thursday after the central bank expanded its pandemic bond-buying initiative by several hundred billion dollars. Policymakers are trying to throw everything at the bearish regional economy to help stop the bleeding and prevent the eurozone from slipping deeper into a recession. Will this be enough to reverse the eurozone market’s downward trend?
The euro is surging midweek after the European Union announced a monumental €750 billion ($826.5 billion) to support the eurozone economy. The region faces the worst financial crisis since the 1930s, which comes as many trade bloc members already faced anemic growth before the pandemic.
The Hungarian forint is strengthening on Tuesday as the central bank left interest rates unchanged and confirmed that it would not be ultra-aggressive in its quantitative easing efforts as its global counterparts. The institution’s decision left investors with the impression that Hungary’s economy could withstand the global fallout from the coronavirus pandemic.
