Yesterday we saw weaker-than-expected manufacturing data out of Canada – with the Canadian dollar almost touching the 1.21 mark against the US Dollar, the highest point seen since 2009. The Canadian currency was not helped out by further falls in the oil price after the long bank holiday weekend began trading at $47, down 3%. The manufacturing sales data plummeted to -1.4% in November, a bigger deficit than the -0.7% forecast. Today the Bank of Canada (BOC) have their interest rate announcement at 3pm, and the outcome is likely to remain at 1%, but with recent data it could force the BOC to mark down the outlook on the their economy.
The woes could continue for the Japanese yen. Today the central bank is due to give its first policy decision of the year. Officials are likely to mark down their outlook for the economy, a decision that could be a sign of stronger stimulus and further weakening for the yen against the US dollar.
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