Commodity linked currencies continue to be the week’s biggest movers. The Canadian Dollar moved near to an 11-year trough against the greenback following the recent elections for Prime Minister and the lowering of growth forecasts by the Bank of Canada. In New Zealand, after being under pressure most of the week after a disappointing milk auction, the Kiwi Dollar recovered lost ground after the Finance Minister suggested that the New Zealand Dollar had already sufficiently adjusted. To FX traders, that suggested that there would likely be no near term policy moves.
As reported at 11:55 am (BDT) in London, the USD/CAD was trading at $C1.3118, down 0.17%; the pair ranged from C$1.3106 at the low end to C$1.3145 at the high. The NZD/USD was 0.83% higher at $0.6765, moving away from the session peak of $0.6785.
Euro Trade Wary
The Euro edged lower as investors await an ECB policy decision that could put the common currency under renewed pressure. The Euro has crept up more than 8% since March, when the ECB launched the latest QE scheme. The Euro’s appreciation has been weighing on economic growth, and many believe that Mario Draghi, the ECB head, will use his press conference to talk down the Euro, rather than make any official move. The EUR/USD was trading at $1.1317, a loss of 0.19%, well off the session peak of $1.1353.