Although the Pound strengthened against its rivals as UK house prices surged, gains were limited by a surprising drop in domestic construction. Then, as the North American session got underway, positive Canadian employment data helped the CAD/GBP pairing rally.
The Canadian Dollar Exchange Rate was in the region of 0.6027 against the British Pound as of 14:55 GMT
The commodity-driven ‘Loonie’ broadly strengthened as data showed a jobs increase of 11,900 in September, significantly higher than the 10,000 increase expected. Augusts’ 59,200 jobs gain was unrevised.
Full time employment rose by 23,400 last month while part-time employment dropped by 11,500. Average hourly earnings were up 1.83 per cent on the year.
The nation’s unemployment rate also declined to 6.9 per cent from 7.1 per cent the previous month, taking it close to the lowest level for almost five years.
Economists forecast that the unemployment rate would remain unchanged.
Although the participation rate also dipped and job creation slowed considerably from August, this was still a positive result given the patchy employment data coming out of the nation in recent months.
As Toronto based forex expert Jack Spitz commented; ‘The data was much better than expected, which has caused a knee jerk reaction of taking the Canadian Dollar higher. While the number was strong, the market is still more impacted by what’s going on in Washington than what’s going on in Ottawa, and is still seeking clarity.’
The CAD/GBP exchange rate hit a low of 0.6002
While the encouraging report helped the Canadian Dollar gain on the Pound, the currency was also able to trim its five-day decline against the US Dollar to 0.9 per cent – although news from the US relating to the default and federal shutdown could see the CAD/USD pairing experience additional movement before the weekend.
As it stands, hopes that the two warring political factions in the US will reach a compromise before the October 17th deadline have lent higher-risk assets like the Canadian Dollar support.
According to currency strategist Brian Daingerfield; ‘The last 24 hours have given markets more confidence that the two sides can come up with an acceptable package.’
Canadian data to look out for next week includes existing home sales, manufacturing shipments and inflation.
News from the US and growth figures for China are also likely to impact the commodity-driven asset.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9621 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7090 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6027 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0179 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1657 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6595 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0390 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4098 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8613 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9825 >
(Correct as of 14:55 GMT)
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