As noted in yesterday’s article, the Canadian trade balance data indeed came out lower than forecast. The effect has been a minor ripple across Canadian dollar (CAD) pairs, driving the Loonie lower against a number of its rivals over the past several hours.
The USD/CAD rose from yesterday’s low of 0.9544 to a current price of 0.9633. Momentum appears to favor the continuation of the CAD’s downturn as well. The GBP/CAD witnessed a similar move, spiking over 150 pips since the publication of the Canadian trade balance data.
The Bank of Canada (BOC) also held interest rates at 1.00%, as expected, noting faster growth than was expected and a surging CAD as the reasons for its decision.
As Canadians gear up for election debates, the nation’s finances appear to be more volatile than usual. Some have cited high oil prices and recent global events for the instability, but tensions surrounding the national election, to be held May 2nd, have no doubt fueled a bit of the uncertainty in Canada.
Investors interested in CAD trading should follow these political debates and any additional data out of Canada over the next few days. The CAD may see some interesting movements as the elections get underway.
