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31 Dec 2013
USD/CAD: Loonie bounces back from tapering slump
FXstreet.com (London) - The Canadian dollar has risen from three-year lows, after being sold to CAD1.0738 in 20 December. The loonie has rebounded on bets that it has been over sold following the US Federal Reserve’s decision on 18 December to cut its stimulus programme.
USD/CAD is currently trading at CAD1.0642, down 0.08 percent.
The Fed announced that it would be tapering its monthly asset purchases by USD10bn to 75bn a month and allowing its borrowing costs to rise.
The Canadian dollar has declined 7.3 percent against the dollar this year.
The Canadian dollar has received some support as investors move to square positions. Many see the Fed taper rally as close to running out of steam and are moving out of short CAD positions and into higher-yielding currencies.
USD/CAD is currently trading at CAD1.0642, down 0.08 percent.
The Fed announced that it would be tapering its monthly asset purchases by USD10bn to 75bn a month and allowing its borrowing costs to rise.
The Canadian dollar has declined 7.3 percent against the dollar this year.
The Canadian dollar has received some support as investors move to square positions. Many see the Fed taper rally as close to running out of steam and are moving out of short CAD positions and into higher-yielding currencies.