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20 Sep 2013
Loonie continues to post losses, Bullard comments sends CAD/USD falling
FXstreet.com (London) - The Canadian dollar has continued to post losses against the US dollar, declining further on suggestions from St Louis Fed chairman and FOMC voting member James Bullard that a small tapering of the Fed’s monthly asset purchases might be possible in October.
CAD/USD has been steady declines from its highs of USD0.9819 on strong dollar selling following the surprise FOMC announcement earlier in the week that it would not be tapering monthly Fed asset purchases from USD85bn. The continued loose monetary policy pushed treasury yields down and widened the interest-rate differential between Canadian and US two-year government bonds.
Canadian two-year bonds currently yield 1.24 percent, versus US 2-year bonds at 0.3750 percent.
The CAD was driven off its highs by Canadian companies trading with the US taking advantage of advantageous dollar weakness to buy up the currency.
The Canadian dollar currently stands at USD0.9725.
CAD/USD has been steady declines from its highs of USD0.9819 on strong dollar selling following the surprise FOMC announcement earlier in the week that it would not be tapering monthly Fed asset purchases from USD85bn. The continued loose monetary policy pushed treasury yields down and widened the interest-rate differential between Canadian and US two-year government bonds.
Canadian two-year bonds currently yield 1.24 percent, versus US 2-year bonds at 0.3750 percent.
The CAD was driven off its highs by Canadian companies trading with the US taking advantage of advantageous dollar weakness to buy up the currency.
The Canadian dollar currently stands at USD0.9725.