Last week’s surprisingly strong domestic employment data saw the Canadian Dollar strengthen against the majority of its peers, with the currency achieving a three-week high against its US rival and posting its first notable gain against a bullish Pound for several days.
The Canadian Dollar Exchange Rate was in the region of 0.6143 against the British Pound as of 14:50 GMT
As the North American session got underway the currency remained supported as investors speculated on the likelihood of this week’s Canadian data also showing improvement.
After a stream of less-than-impressive economic reports, some economists are forecasting that last week’s employment data (which showed that the Canadian economy added nearly three times as many positions as forecast in August) will herald the start of a more encouraging few months.
Before Canadian building permits data was published, Toronto based industry expert Don Mikolich asserted: ‘Canada, I think, looks pretty good, the job number confirmed things are developing nicely. The housing data, we’re looking at a decent flat-to-up from what the numbers have been running at, which is still a pretty decent pace. That should be enough to continue this little Canada rally.’
The CAD/GBP exchange rate hit a high of 0.6186
For over a year the Bank of Canada has been hinting at raising interest rates, and consistent signs that Canada’s economic recovery is picking up could encourage the central bank to make those hints a reality.
The ‘Loonie’ was able to extend gains after the nation’s building permits were shown to have hit record levels in July.
The value of municipal permits surged by 20.7 per cent, significantly more than the 3.5 per cent increase forecast.
In response to the figures foreign-exchange strategist Greg Anderson stated: ‘It’s a terrific number, the best we’ve seen in years – it’s jobs and money pumped back into the economy. I’m surprised the ‘Loonie’ hasn’t caught more of a bit on this. You’re not increasing consumer debt, you’re increasing commercial and industrial debt, and that’s where there’s capacity. I wouldn’t be surprised to see Dollar/CAD at C$1.03 in the next few days.’
Tomorrow’s Canadian housing starts report will now be of even more interest to investors while Thursday’s local new housing price index could be responsible for further ‘Loonie’ fluctuations.
The Canadian Dollar achieved a high of 0.9653 US cents.
The most influential piece of UK news impacting the CAD/GBP pairing will be the British employment data, due out on Wednesday.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9651 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7298 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6143 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0468 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2029 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6277 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0379 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3703 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8311 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9553 <
(Correct as of 14:50 GMT)
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