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Tue 16 Apr 2024 06:41GMT

Canadian Dollar (CAD) Plummets as Oil Prices Slide by 10%

Published: 16 Mar at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Italy,

Pound Sterling (GBP)

The Pound (GBP) edged higher today as hopes returned for the British economy as Downing Street appeared to take a firmer stance on the coronavirus epidemic.

Today also saw the release of the UK Rightmove House Price Index, which rose in March by 1%, while the year-on-year figure edged higher by 3.5%.

US Dollar (USD)

The US Dollar (USD) remained subdued against many of its peers after the US Federal Reserve cut its interest rates from 1.25% to 0.25% on Sunday. As a result, ‘Greenback’ traders have become increasingly fearful that the US economy could slide this year.

Today also saw the US NY Empire State Manufacturing Index for March fall by -21.5.

Euro (EUR)

The Euro (EUR) benefited from its negative-correlation with the US Dollar. But many single currency traders remained cautious as the Eurozone’s economic outlook continues to darken.

With Italy under lockdown to delay and contain the coronavirus outbreak, the Eurozone is increasingly expected to face a recession in the near-term.

Australian Dollar (AUD)

The risk-sensitive Australian Dollar (AUD) struggled today as Australia’s economy is set to suffer amid growing fears of a global recession. Also, with China being Australia’s largest trading partner, fears of a drag on the Chinese economy in the first quarter is also AUD-negative.

The Reserve Bank of Australia (RBA) is also expected to go ahead with quantitative easing to aid the struggling domestic economy. However, ‘Aussie’ traders are pessimistic, seeing the bank’s measures as being unable to ward off a potential recession.

New Zealand Dollar (NZD)

The New Zealand Dollar (NZD) has also suffered from slipping risk-appetite today. This follows news of several central banks acting to counter the negative economic effects of the coronavirus.

Hamish Pepper, a strategist at Harbour Asset Management, also raised concerns over a Reserve Bank of New Zealand rate cut, saying:

‘The overwhelming story is that the RBA will not just deliver a rate cut on Thursday but they will announce a bond-buying programme as well.’

Canadian Dollar (CAD)

The Canadian Dollar (CAD) plummeted today as oil prices crashed by 10% on coronavirus fears.

With the Canadian economy being heavily reliant on its oil exports, this left many ‘Loonie’ traders pessimistic about its economy going forward.

As of Monday, 16th March 2020, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.0991, GBP USD exchange rate was 1.2266, GBP AUD exchange rate was 2.0104, GBP NZD exchange rate was 2.0292, GBP CAD exchange rate was 1.7184, and GBP CNY exchange rate was 8.5779.
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