29 Jan “Currency Exchange” News for Canadian Dollar & U.S. Dollar

Currency Exchange| Fall of Canadian dollar isn’t over yet

The Canadian dollar is at its weakest levels, hitting a low of $79.63 cent U.S. this morning. The loonie dropped lower due to continuously falling oil prices, and central bank’s policy of maintaining its low interest rates and a belief that inflation will have a minimal impact (dovish).

On the other hand, yesterday the Federal Reserve set the stage for a rate hike causing the US dollar to rise against other major currencies. We also saw further positive news that the U.S. unemployment benefit applications dropped to a 15 year low. At the same time employers added 3 million jobs last year, the most since 1999. The trend seems to be in favour of the US dollar and we see it being reflected as money is being driven to the greenback.

The Canadian dollar dropped 20 per cent in two years, causing Bank of Montreal chief economist to say Canadian dollar: 80 is the new 90. This drop is mainly due to a weakening Canadian dollar, but some fall can also be noted to a rising US dollar exchange rate.

It is believed that the Bank of Canada may cut interest rates again, which will further weigh down the loonie. We may see an even further downfall if the US Federal Reserve raises their rates.

CIBC World Markets chief economist suggests a 77 cent dollar, others economists predict a 75 cent dollar, and Goldman Sachs Group predicts a 71 cents dollar (for 2017).

Today we will see a wide range of companies from different sectors report their earnings. The results will highlight the status of the economy and will impact currency exchange rates for different currencies.

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