Canadian Dollar steady, but not for long
Last Friday, the Canadian dollar retained its position over the weak US dollar after recovering from earlier decline as the currency market focused on the current forex policies of the major central banks of the countries of the world.
The US dollar declined because of investor worry over the pull back of the aggressive stimulus measures from the Federal Reserve together with the decline in US consumer confidence and sentiment.
According to Jack Spitz, managing director for foreign exchange at the National Bank Financial, said "It's more or less unchanged. Slight volatility today, based on stop loss selling in US$/Can$ below Can$1.0150." Spitz referred to the early orders placed to sell currency after reaching a specific price has been attained.
The loonie was mixed against other currencies during its North American session last Friday, pegging the US dollar at Can$1.0169. Many strategists had said that this week they expected that the Canadian dollar could further weaken when Chairman Ben Bernanke announces the Federal Reserve's plans next week.