Cautionary news on the Canadian economy comes from three fronts this morning, one, the People’s Bank of China may end its recent aggressive stimulus measures, thereby reducing demand for commodities. Two, the number of Canadians who are $200 or less away from financial insolvency every month has climbed to 48 per cent, up from 46 per cent in the previous quarter, in a sign of deteriorating financial stability for many people in the country, according to a new poll. Three, markets are waiting for tomorrow’s announcement from the Bank of Canada that it will be officially holding interest rates for some time yet. Each of these news items have weighed against the Canadian dollar, in theory the Canadian dollar should be stronger based of the fact that oil is up over 55% since December and yet the USDCAD is relatively unchanged. Given that there is a change in Canada’s economic growth, expect the USDCAD to stay in its current trading range.
Currently Close Range
USDCAD 1.3415 1.3347 1.3344-1.3422
EURCAD 1.5032 1.5025 1.5015-1.5076
GBPCAD 1.7349 1.7328 1.7321-1.7444
US: New Home Sales March 662K 692K