Canadian Dollar falls back below the key 90 cents level

Foreign exchange update

Canadian Dollar

The Canadian Dollar is weaker against its peers and fell back below the key 90 cents level against its US relation as investors speculate on the Bank of Canada’s plans for interest rates. A run of weak data reports out of the USA, Canada’s biggest trading partner has also weighed upon the currency.

Pound Sterling

The Pound snapped losses against the US Dollar after Bank of England Governor Mark Carney said that the Central Bank will continue to support the UK’s economic recovery. The currency is expected to gain ground this week as economists await the release of GDP data due on Wednesday. The report is expected to show that the UK economy expanded by 0.7% in the fourth quarter of 2014.

US Dollar

The US Dollar is little moved against its peers as economists await the release of a services PMI report for February which is expected to show a decline from the previous month. The Dollar has come under pressure due to run of weaker of than expected data releases in recent weeks. The currency lost some support as risk sentiment improved after the situation in Ukraine seemed to stabilise.

The Euro

The Euro fell against the Pound and other peers over the weekend after ECB President Mario Draghi said that policy makers were ready to add to stimulus measures if the inflation situation in the Eurozone continues to deteriorate. The single currency found some support after the Ukrainian Parliament voted to remove President Viktor Yanukovich and vowed to push for closer ties with the EU.

Australian Dollar

The ‘Aussie’ remains lower against several peers after being continued to be weighed upon by a decline in the price of iron ore and the release of weak data out of China, Australia’s biggest trading partner.

New Zealand Dollar

The New Zealand Dollar is little moved against its peers as economists await the release of data throughout the week. With no major domestic data scheduled for release this week, traders will be looking for changes in global sentiment or unexpected announcements to provide direction.

South African Rand

The Rand is little moved against the US Dollar but remains under pressure against other peers. An easing in risk aversion due to the events in Ukraine offered some support but strikes in the nation’s mining sector continue to weigh heavily. Attention this week will be on fourth quarter economic growth numbers which are due on Tuesday.