Canadian Dollar Falls Following BOC Deputy Governor Lane's Remarks
September 18 2017 - 11:10PM
RTTF2
The Canadian dollar weakened against other major currencies in
the Asian session on Tuesday, after the Bank of Canada Deputy
Governor Timothy Lane said that the currency's strength will be a
factor in future rate decisions.
Speaking at Saskatoon, Saskatchewan, the BoC Deputy Governor
Timothy Lane said, "We will be paying close attention to how the
economy responds to both higher interest rates and the stronger
Canadian dollar".
Lane also said that growth is becoming more broadly based and
self-sustaining, while expanding imports of machinery and equipment
and other intermediary goods are early signs of rising business
investment.
Investors preferred to stay on the sidelines ahead of the U.S.
Federal Reserve's two-day monetary policy meeting that begins later
in the day.
In tha Asian trading, the Canadian dollar fell to near 2-week
lows of 1.4751 against the euro and 0.9819 against the Australian
dollar, from yesterday's closing quotes of 1.4688 and 0.9782,
respectively. If the loonie extends its downtrend, it is likely to
find support around 1.50 against the euro and 1.00 against the
aussie.
Against the U.S. dollar and the yen, the loonie dropped to
1.2273 and 90.58 from yesterday's closing quotes of 1.2291 and
90.75, respectively. The loonie may test support near 1.20 against
the greenback and 88.00 against the yen.
In the scheduled events today, Eurozone current account data and
construction output for July and the German ZEW economic sentiment
index for September are due to br released later in the day.
In the New York session, Canada manufacturing sales data for
July, U.S. housing start and building permits for July and import
price index for August are slated for release.
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