The Canadian Dollar, also known as Loonie is currently trading near a figure that’s the lowest in a month before the Group of 20 meeting is to be held. This meeting is expected to offer clues about measures of the Central Banks for jump staring the global economic growth. Loonie pared its gains against the greenback earlier today and it was little changed. It is currently priced at $1.0264 per U.S. dollar, despite rising earlier to a figure of C$1.0230. On yesterday, it went to C$1.0294, marking its lowest level since 13th March.
According to the Head Analyst of the Oanda Corp., a renowned online currency trading company, Dean Popplewell, market is currently interested to see what the Group of 20 meeting brings on the table and how aggressive it gets when it comes to foreign exchange rates. Popplewell added that the Central Banks are currently looking to get a positive growth which is sustainable as well. At the current moment, there is no sort of global conviction in the trend.
In a research note released for the clients, the Chief Technical Analyst of Royal Bank of Canada’s RBC Capital Markets unit, George Davis stated that the Canadian Dollar should be sold at levels weaker than the C$1.0285. An hourly close above the mentioned level is expected to pave the way for further gains toward C$1.0315. Even, the currency can experience a further gain and go to C$1.0340 area. He also advised to place a tight slop below the C$1.0192 mark on an hourly closing basis. When the asset reaches the predetermined price, a stop in an order should be executed.
On the other hand, the benchmark 10-year bonds of Canada increased, however, the yields experienced decline of a single point. It is currently valued at 1.70%. Apart from that, the 1.5% security scheduled to mature in June, 2023 increased by 7 cents and is currently at C$98.13.
The Bank of Canada has already announced its plans to sell C$3.3 billion of notes on 24th April. The Governor of the Bank of Canada, Mark Carney has also announced to reduce growth forecast for the current year. The 10-year yields dropped on yesterday to a low figure of 1.69% as well. Many feel that the housing market of this nation is heading towards the correct direction. The benchmark interest rate is kept at 1%.