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Canadian Dollar Close To Three-Year Low After FOMC Announcement

Published: 19 Dec at 5 PM Tags: Dollar, Pound Sterling, America, UK, Canadian Dollar, USA, Canada, India, Japan,

The ‘Loonie’ approached a three-year low against its US counterpart today as investors continued to respond to the Federal Open Market Committee's surprising stimulus decision.

The commodity-driven asset also softened against several of its most traded peers as commodities fluctuated.

Meanwhile positive UK retail sales figures helped the GBP/CAD pairing advance and the US Dollar remained stronger despite US initial jobless claims rising in the week ending December 14th.

According to one London based currency strategist; 'The nearer-term story is probably still one of a gradual grind toward the downside, in terms of CAD performance. It's all about leader and laggard, and if you think the US is going to be a leader in terms of having growth earlier, that provides a better fundamental US bias, at least in the short term.'

Tomorrow sees the publication of Canadian inflation data. Economists have forecast that inflation remained at the bottom end of the Bank of Canada's target range in November.

In other currency news the Rupee extended declines against peers like the US Dollar as the Reserve Bank of India's decision to leave interest rates unaltered and the US taper news took a toll.

The Pound consolidated yesterday's advance as retail sales gained in November following October's declines.

The Yen fluctuated against the US Dollar ahead of the Bank of Japan's monetary policy statement.

Surprising action on the part of the BOJ could have a significant impact on the Yen.
As of Thursday, 19th December 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP USD exchange rate was 1.6364, GBP CAD exchange rate was 1.7465, GBP INR exchange rate was 101.7503, and GBP JPY exchange rate was 170.6619.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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