The Canadian Dollar dropped the most in three years today. The Canadian central bank surprised the markets by cutting interest rates by 25 basis points to 0.75%. USD/CAD rallied nearly 3% on the announcement reaching the highest level since 2009. USD/CAD has been one of the best trend trades of the last few months putting on solid gains week after week.
The so called “Loonie” has been suffering of late because of the huge drops in the price of crude oil. Oil makes up the most of their exports.
How much further will this go? Now we have oil more steady its difficult to say.
AUD and NZD hit as well – the markets now fear which central bank is next to cut rates.