Excerpt from: Forex Analysis
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| December 09, 2008 | | Loonie falls on interest rate cut | Over the past three days, the Canadian dollar has been enjoying a rally in forex trading. Slightly recovering oil prices, and yesterday's stock market rally, have helped the loonie in currency trading.
However, that appears to be over for now. Oil prices are falling again, and stocks are retreating. On top of that, the Canadian dollar is not receiving any help from the central bank.
The Canadian central bank cut interest rates by 75 basis points (to put them at 1.5%), and that is an indicator that the Canadian economy is probably slowing significantly. With the rest of the world in recession, it is only a matter of time until the loonie heads down further in currency trading.
| Topic Tags: Canadian dollar forex trading, currency trading, economy, forex trading, global recession, interest rates, loonie currency trading, oil prices, recession | |
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