The Canadian dollar fell to the lowest level in two years as weak exports added to concern expressed by Bank of Canada policy makers that a projected driver of economic growth has not yet materialized.
The surprise decision by the European Central Bank to cut interest rates means there’s now about an even chance that the euro, this year’s best-performing major currency, will erase all of its gains in a matter of months.
The pound jumped more than 1 percent against the euro, the biggest gain in six months, after euro- area inflation slowed and the jobless rate climbed to a record, boosting demand for alternatives to Europe’s shared currency.
The Canadian dollar lost the most since June after the Bank of Canada dropped language about the need for future interest-rate increases that has been in place for more than a year, citing greater slack in the economy.
July 5 (Bloomberg) -- Geoffrey Yu, a currency analyst at UBS AG, talks about the outlook for the euro and currency markets. He speaks with Sara Eisen on Bloomberg Television's "Lunch Money." (Source: Bloomberg)