Yesterday the ‘Loonie’ was able to climb against several of its main peers, edging away from a two-year low against its US counterpart and gaining on the Pound, as ECB President Mario Draghi asserted that fiscal stimulus would remain accommodative. Gains were consolidated as the US economy was shown to have expanded by less-than-forecast.
The Canadian Dollar Exchange Rate was in the region of 0.6271 against the British Pound as of 14:30 GMT
Today the commodity-driven currency continued its upward climb as higher-risk assets were bolstered by a surprising jump in economic confidence in the Eurozone.
An index of executive and consumer sentiment in the Eurozone advanced to 91.3 in June from 89.5 the previous month. Economists had predicted a more modest reading of 90.4.
Sentiment among European manufacturers edged from -13 to -11.2 while consumer confidence moved from -21.9 to -18.8.
With risk appetite emboldened by the news the Canadian Dollar was able to benefit.
The odds of the US economy tapering stimulus this year were also lowered after Federal Reserve Bank of Richmond President Jeffrey Lacker stated that the US economy would continue to post ‘sluggish’ growth for some time, intimating that bond purchases should continue.
With Japanese stocks also gaining for the first time in three days and futures on crude oil rising modestly the Canadian Dollar was able to climb to a week-high against the US Dollar.
The Canadian Dollar to Pound Sterling exchange rate hit a high of 0.6289 pence
In response to the ‘Loonie’s movement Toronto-based strategist David Tulk asserted: ‘When you get through all the rhetoric, the Fed does put the data in the driver’s seat. People may be looking at the Fed being a bit more cautious in tapering, and looking at a bond market and a currency market that might have moved a bit too far, a bit too early.’
However, the US did release some positive data today. Separate reports revealed that US consumer spending surged in May, rebounding by 0.3 per cent following April’s 0.3 per cent decline.
Meanwhile, initial jobless claims fell by 9,000 in the week ending June 22, and wages/salaries climbed 0.3 per cent.
The result prompted one economist with Societe Generale to comment: ‘We’re going to have a healthy second half. We don’t need to worry about consumer spending. Consumers are doing fine. People feel comfortable about their jobs and they’re willing to spend.’
The ‘Loonie’ was little changed after a report showed average weekly earnings in Canada gained by 2.2 per cent year-on-year in April, down from a gain of 2.3 per cent in March.
Tomorrow the Canadian Dollar is likely to fluctuate following the publication of domestic growth data.
Economists have forecast that the Canadian economy stagnated in April after growing by 0.2 per cent in March. On the year GDP is expected to have advanced by 1.4 per cent.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9582 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7346 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6271 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0283 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2218 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5925 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0452 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3593 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8181 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9722 >
(Correct as of 14:30 GMT)