It has been a week of two halves for the Canadian dollar, which stumbled at the start of the week in the wake of below-forecast economic growth figures, which were released on Monday. April’s output rose by just 0.1%, with the Canadian production industry, specifically energy production, contracting by an estimated 0.3%. As a result, the North American currency lost ground throughout Monday and Tuesday, but bounced back yesterday after trade balance figures came in better than expected. The data showed that the country’s deficit had narrowed throughout April, which supported the Canadian dollar and reversed the losses it suffered earlier in the week.
The Swedish krona plunged yesterday, dropping off almost 2% against sterling following a more aggressive interest rate cut than traders had forecasted. Rates were slashed half a per cent in an attempt from the Swedish central bank to boost inflation rates. The Australian dollar also lost significant ground after a statement from the central bank Governor that the currency was overvalued. A quiet day on the data front today means we may not see too much movement in the markets.
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