The Canadian Dollar saw its best against the Euro towards the end of April of this year at $1.31339 vs the Euro. The Loonie had steadily gained against the Euro in the days leading to and following the initiation of its expanded asset purchase program, 9 March. The Bank of Canada had reduced its key policy rate several weeks before to 0.75% from 1.00%. The year’s high for the pair was $1.4358 per Euro attained on 30 January. From there the Loonie gained 6.289% to $1.3455 per. A small retracement followed, the Loonie giving up just under 2% before resuming its trend lower, reaching $1.31339 on 23 April; just over 8.5% since 30 January.
It should be noted that the 2% ‘bounce’ that occurred between 13 March and 30 March coincided with the US Fed mid-March meeting at which the Fed indicated the necessity of raising rates and at the same time downgrading its growth and inflation expectations for the US economy.
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