Yesterday the Canadian Dollar declined as a result of falling crude oil prices and a smaller-than-forecast gain in US retail sales. Today the currency has strengthened modestly against the Pound but dipped against the US Dollar as investors speculate on the outcome of tomorrow’s Bank of Canada rate decision.
The Canadian Dollar Exchange Rate was in the region of 0.6368 against the British Pound as of 14:20 GMT
Tomorrow Stephen Poloz will announce his first interest rate decision since heading up the central bank in June.
It is expected that he will hold the benchmark rate at 1 per cent but make some reference to Canada’s economic slowdown in his policy statement.
As Toronto-based industry expert Blake Jespersen comments: ‘Given his background and given the Canadian economy has underperformed a little bit, he might talk in somewhat simulative terms to present to the marker he is aware and he is prepared to do what it takes to improve the situation. But at this point he sort of has his hands tied. He can’t raise rates given the economy hasn’t been performing that well and again he can’t cut rates given the consumer-debt levels.’
The CAD/GBP exchange rate hit a high of 0.6394 pence per Dollar
The ‘Loonie’ declined against the US Dollar as US consumer prices were shown to have risen by more than expected (edging towards the Fed’s target) despite stimulus speculation triggering ‘Greenback’ fluctuations. However, the Canadian Dollar advanced slightly on the Pound as the British currency softened in reaction to the UK’s inflation figures.
Canadian factory sales data had little effect on the commodity-driven currency.
Figures compiled by Statistics Canada showed that factory sales rose 0.7 per cent in May, month on month, although they were still down 3.2 per cent on the year. The gain from April to May was smaller than the 0.8 per cent estimated.
Meanwhile, inventories dropped by 0.2 per cent in the first decline for five months.
Tomorrow’s Bank of Canada rate decision is likely to trigger ‘Loonie’ volatility but industry experts will also be focusing on Fed Chairman Ben Bernanke’s address to congress.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9601 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7319 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6368 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0419 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2353 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5695 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0412 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3661 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8114 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9598 >
(Correct as of 14:20 GMT)
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