In the wake of the US budget compromise which saw the government reopen after a 16-day shutdown, the Canadian Dollar softened against the Pound and dropped to a five-week low against the US Dollar.
However, the commodity-driven asset is beginning the week in a stronger position as Canada’s economic outlook brightened on hopes that tomorrow’s US employment report will show improvement.
The Canadian Dollar Exchange Rate was in the region of 0.6018 against the British Pound as of 14:15 GMT
The ‘Loonie’ was moderately stronger against Sterling, although weaker against the US Dollar, ahead of tomorrow’s US non-farm payrolls report.
While the employment figures were scheduled for release on October 4th, the shutdown prevented their publication.
Industry experts are anticipating that the US economy added 180,000 positions in September, with the unemployment rate holding at 7.3 per cent.
As the US is Canada’s main trading partner, positive US news is typically Canada supportive, however the CAD/USD pairing was also feeling the pressure ahead of the Bank of Canada’s rate decision, taking place on the 23rd.
Economists have predicted that the central bank will hold its benchmark rate at 1 per cent.
The CAD/GBP exchange rate hit a high of 0.6029
According to currency strategist Adam Cole; ‘When the Dollar is independently strong, it tends to pull CAD with it on the crosses. When the Dollar is up against everything, it tends to be up less against Canada as CAD gets pulled along as a kind of mini-Dollar.’
Meanwhile, the CAD/GBP pairing was boosted during the local session as Canadian wholesale sales advanced for a second month in August.
Sales rallied by 0.5 per cent rather than the 0.3 per cent expected as five of the seven categories tracked by Statistics Canada showed an advance.
Motor vehicle sales enjoyed their most significant surge in two years while personal and household goods climbed by 1.8 per cent.
As the week progresses the BOC rate decision is likely to dictate ‘Loonie’ movement, although news from the US and UK economic data could also trigger CAD/USD and CAD/GBP volatility.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9715 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7109 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6018 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0056 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1477 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6614 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0293 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4067 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8689 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9942 <
(Correct as of 14:15 GMT)
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