No More Rates Hike Expected — USD/CAD Goes Up

The Canadian dollar fell today against its US counterpart on the speculation that the Canadian central bank wouldn’t rise the interest rates on the tomorrow’s meeting. The euro was weakening today against other currencies, including the Canadian dollar.

The Bank of Canada kept the interest rates unchanged, following the three consecutive increases, because of the weaker economy of the US, the main Canada’s trading partner. The analysts don’t think that the situation improved in any noticeable way to warrant the rates hike. The poor employment data from both the US and Canada last week definitely wasn’t helping to improve the economic outlook.

The Standard & Poor’s 500 Index went down 0.1 percent over the day after it declined 0.3 percent and rose 0.1 percent. January futures on crude oil decline 0.4 percent to $88.83 per barrel in New York, following the advance to $89.76, the highest level since October 2008, and the drop to $88.56. The Canadian dollar remains second best-performing currency, despite the losses, among the G-10 currencies today, outperformed only by the yen.

USD/CAD went up from 1.0033 to 1.0050 as of 23:45 GMT today, following the advance to 1.0082. EUR/CAD dropped from 1.3451 to 1.3356.

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