Week in FX Americas – Loonie Is As Boring As It's Data
Despite the mass fallout in commodity prices this week, the loonie has traded in a well-contained range. It has been trading like a currency that time forgot, unlike its partner in crime the AUD down-under. Even the IMF warning that the Aussie is about +10% overvalued has tried to take the edge off the Japanese housewife's favorite commodity currency. Modest support from cross/JPY buying and a credit rating agency's triple A-rating nod has the AUD outperforming its sister for now.
Notwithstanding the Bank of Canada holding O/N rates steady at +1% this week, outgoing Governor Carney sung more of a dovish tune – up until now he was one of the last remaining global 'hawks'. The BoC has reduced its growth forecast for 2013 and said economic slack will persist for more than two years. Policy makers have lowered their 2013 growth forecast to +1.5% from the +2% it had predicted in January, after recent data in Canada, China and the U.S. trailed forecasts.
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