Forex – Loonie Falls As Bank of Canada Keeps Rates Steady

© Reuters. – The greenback rose on Wednesday, while the loonie slumped after the Bank of Canada kept steady as expected.

The , which measures the greenback’s strength against a basket of six major currencies, rose 0.1% to 97.41 as of 10:44 AM ET (14:44 GMT).

rose 0.6% to 1.3502 after the Bank of Canada kept rates at 1.75%, citing a decline in global growth activity due to trade concerns.

“Ongoing uncertainty related to trade conflicts has undermined business sentiment and activity, contributing to a synchronous slowdown across many countries,” the bank said in a statement.

Still, the central bank said it expects growth in Canada to pick up during the second half of the year.

Elsewhere, the euro was lower, as German business morale fell in April. slipped 0.2% to 1.1197, nearing its lowest level since early March.

“Trade pressure and concerns about global protectionism are weighing over Europe’s overall external position and challenging its growth trajectory. We are looking at underperformance relative to the U.S. for now,” said Karl Schamotta, director of foreign exchange strategy and structured products at Cambridge Global Payments.

Meanwhile, sterling was flat, with at 1.2955 as hopes of a breakthrough on Brexit faded.

The dollar was down against the safe-haven yen, with slipping 0.1% to 111.72.

— Reuters contributed to this report.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.