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Loonie slides against dollar after Federal Reserve meeting

CAD - Canadian Dollar

The Canadian Dollar is down nearly 1.5 percent against the US dollar today after the Federal Reserve’s cautious explanation to markets. USD/CAD is trading at 1.35 at the time of writing.

With no Canadian economic data in the forefront of the news, all eyes were on Federal Reserve Chairman Jerome Powell at the conclusion of the Federal Reserve meeting. The Federal Reserve’s outlook for a long economic recovery knocked the price of oil down. WTI was down 4.8% at $37.71 per barrel. Following the meeting, the US dollar, Swiss franc and Japanese yen gained the most of the traditional haven currencies.

Key Movers

The British pound’s drop was partly driven by a report from the OECD that the UK will suffer the worst damage among all the countries in the developed world. Tomorrow, the UK government releases GDP figures to gauge the accuracy of the OECD report.

In Europe today, European finance ministers meet to discuss the EU recovery fund in all its detail. The market will be looking to see if countries such as the Netherlands and Austria will follow the example of Denmark and reconsider the matter of grants being issued to heavily struck nations.

Expected Ranges

USD/CAD: 1.332 - 1.357 ▲

GBP/CAD: 1.705 - 1.714 ▼

EUR/CAD: 1.518 - 1.545 ▼