Currency Note Worldwide

Canadian dollar undermined by politicians and poor data

By Smart Currency January 10th, 2014

Elsewhere this week, the big mover has been the Canadian dollar. Starting the week on a tough footing following comments from Government Ministers over the weekend, the dollar took a further shock on Tuesday following worse-than-forecast trade balance figures. Policy makers have been talking-up the possibility of a boom in export levels over coming months, and the figures cast doubt over the legitimacy of such claims. As a result, the Canadian currency has weakened to levels last seen in 2009. With no sign of an imminent bottom, it seems only very strong employment figures today will be enough to slow the trend. Despite strong retail sales figures yesterday, the Australian dollar continues to weaken. Speculation surrounding US Federal Reserve policy on tapering has been the driving force behind the weakness of the Australian dollar, with the economy being so export-reliant. For the same reason we saw the South African rand drop down to 5-year lows against the US dollar yesterday. Overnight last night we had trade balance figures out of China, and later today we have the aforementioned employment data from Canada. Get in touch with your trader for a live rate.