USD/CAD Canadian Dollar Lower on ECB Topsy Turvy Thursday

Sep 12 19:09 2019 Print This Article

The Canadian dollar is lower on Thursday. The loonie is trading at 1.3217 after the European Central Bank (ECB) cut its benchmark rate and announced a relaunch of its QE program. The central bank will buy 20 billion euros a month of bonds in an effort to boost the eurozone economy. The Canadian dollar had a volatile day of trading at it was caught between trade optimism and lower rates, that boosted stock markets and in the other hand doubts about an interim US-China trade deal and a falling price of oil.

The Bank of Canada (BoC) held rates unchanged in September, but the rate differential and a strong jobs market did little for the loonie on Thursday. Risk aversion and appetite came in and out of the market with he final balance for the CAD was depreciation.

The US dollar was higher against the JPY, CAD and NZD out of the majors, but in a quick reversal of earlier trading was down against European pairs. The move was not seen as a win for the ECB, even though Mario Draghi went all in on the monetary policy toolkit available even as he is winding down his presidency. Christine Lagarde will take over in November with the herculean task to convince the market that whatever is left in the policy bag of tricks can boost growth.

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