6 July 2011

Canadian dollar is lower amid China rate increase and Portugal rating downgrade

Canadian dollar is trading a bit lower against US dollar today
because of the news from China and new “junk” status of Portugal debt

Chinese Central Bank rises key interest rate 3rd time this year to slow economy and fight high inflation.

Rating agency Moody downgraded Portugal debt to “junk” raising the question again about deep European Union problems.

In Canada Royal Bank is forecasting that Bank of Canada will start rate hikes in September, while the rest of traders expects first hike no earlier than February 2012.

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