USD has been up and down for some weeks because of uncertainty whether Federal Reserve increase their interest rate by the end of 2015.
GBP was another currency whose interest rate had been expected going up. However, in earlier this month, Bank of England governor Mark Carney hinted their interest rate will stay lower for longer. GBP has gone down sharply against major currencies including USD and JPY.
The Telegraph >> Mark Carney suggests interest rates will stay lower for longer
Bank of England governor Mark Carney has said he still sees the need for gradual interest rates rises to bring inflation back to target, but latest forecasts signal a hike in the cost of borrowing may not come for another year.
Mr Carney, who previously said the decision on whether to raise rates would come into "sharper relief" around the turn of the year, said the economic picture had changed in recent months as the global economy has slowed.
He warned the outlook for global growth had weakened since the Bank's last inflation report in August and added that there was a risk of a "more abrupt slowdown in China", which could hit UK growth.
His comments follow the Bank's decision once more to keep interest rates at 0.5%, where they have remained for more than six years.
By the way, the trend and momentum for USDCAD indicates it is expected going down in a coming week. Fundamentally, expectation for the rate rise is a driving factor to USD in short term. If the market consensus expect the rate will not rise by the end of this year, USD could go down sharply against major currencies.
