Loonie Plummets To Multi-day Lows Against Majors Amid Canadian Rate Decision

The Canadian currency plunged sharply against major opponents following the announcement of Bank Of Canada's interest rate decision during New York morning trading on Tuesday.

The Bank Of Canada maintained its overnight rate target unchanged at 0.25 percent in October. The BoC may be continue to keep the rate unchanged for a long period unless the inflation outlook changes.

Statistics Canada reported today that Canadian wholesale sales fell by 1.4% in August after a 2.6% gain in the previous month. Economists expected wholesale sales to rise 1% following a revised 2.6% increase in July.

The Stats Canada also said that Canadian leading indicators index rose by 1.1% in September from August.

Extending previous session's downtrend, the loonie declined further against its US counterpart in New York morning deals today. At 11:35 am ET, the loonie dropped to an 11-day low of 1.0530 versus the greenback, compared to yesterday's close of 1.0286.

The U.S. Labor Department revealed that producer prices fell 0.6 percent in September. Economists were looking producer prices to slip by 0.3 percent in the month. Core prices, which exclude the volatile food and energy sectors, edged down by 0.1 percent for September. Economists were looking for an advance of 0.1 percent.

The U.S. Commerce Department released a report today showing that housing starts edged up 0.5 percent to an annual rate of 590,000 in September from the revised August estimate of 587,000. Economists had expected starts to rise to 610,000 from the 598,000 originally reported for the previous month.

Additionally, the report showed that building permits, an indicator of future housing demand, fell 1.2 percent to an annual rate of 573,000 in September from the revised August rate of 580,000.

Against the euro, the loonie traded down sharply in today's New York morning session and slipped to a 2-week low of 1.5686 at about 11:35 am ET. The pair was worth 1.5393 at yesterday's close. The next downside target level for the Canadian currency is seen at 1.5748.

The Canadian dollar tumbled further against the Japanese yen in morning deals and edged down to a new multi-day low of 86.35 by about 10:20 am ET. The loonie-yen pair that closed Monday's New York session at 88.09, is currently trading near 86.55.

The loonie also traded lower against the Australian dollar in today's New York deals. At 11:00 am ET, the loonie slipped to a fresh multi-month low of 0.9702 versus the yen, which may be compared to yesterday's closing value of 0.9561.

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