Currency Note Worldwide

Commodity backed currencies hope for no US “tapering”

By Ricky Bean October 29th, 2013

Elsewhere yesterday, the Swedish krona was particularly weak after its central bank decided not to raise interest rates whilst downgrading its growth forecasts for the year. After a difficult week last week and off the back of a three-day slide, the Canadian dollar held its ground yesterday. Investors were speculating that the currency had declined too far too fast after the Bank of Canada dropped its bias towards higher interest rates in a statement last week. Markets were also anticipating the US Federal Reserve meeting over the next few days, during which it is widely expected a decision to maintain monetary stimulus will be reached which would be positive news for the higher yielding currencies. Similarly we saw the Australian dollar perform well, as the export-reliant economy thrived off the market speculation surrounding the Federal Reserve meeting. The New Zealand dollar logged gains as traders look forward to Wednesday’s interest rate decision, as many are predicting a rise. Overnight, we saw the Governor of the Revere bank of Australia speaking as well as retail sales figures out of Japan. Later on today we will have inflation data from Canada. Get in touch with your trader for a live rate.