With the Federal Open Market Committee gathering today to begin a two-day policy meeting the Canadian Dollar consolidated yesterday’s gains against the Pound and extended its advance against the US Dollar.
The Canadian Dollar Exchange Rate was in the region of 0.6101 against the British Pound as of 14:20 GMT
Although the ‘Loonie’ slipped modestly from the month-high achieved against the ‘Greenback’ yesterday, the commodity driven asset continues to benefit from the news that Lawrence Summers, the dovish candidate for the position of Chairman of the Federal Reserve, has removed himself from the running.
When the FOMC’s meeting ends tomorrow the Fed is expected to announce that it will be scaling back its stimulus measures to 75 billion Dollars, a reduction of 15 billion Dollars.
As one Toronto based industry expert states; ‘People who were caught long dollars post announcement of Summers are still looking to sell – for the time being they’re trying to lighten their US Dollar positions. It’s still ranging ahead of the FOMC. I think the market in general, based on most bank’s order boards, is poised to buy US Dollars if it dips a little bit lower.’
The CAD/GBP exchange rate hit a high of 0.6113
The Canadian Dollar also benefited from the news that domestic factory sales climbed at their most rapid past for five months in July, advancing 1.7 per cent rather than the 0.5 per cent expected.
Given the concerning signs of economic slowdown the country recorded towards the close of last year, this is a positive sign that things are moving in the right direction. Of the 21 industries tracked by Statistics Canada for the measure 15 reported improvement.
Factory sales excluding price changes rose 1.1 per cent.
The most influential piece of Canadian data scheduled for publication this week is due out on Friday. It is expected that the nation’s consumer price index will show that inflation slowed last month, with consumer price inflation coming in at 1.1 per cent in August as oppose to 1.3 per cent in July. If this forecast proves accurate inflation will have been below the Bank of Canada’s two percent target for 16 months.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9713 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7259 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6102 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0369 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1828 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6392 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0317 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3772 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8425 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9640 >
(Correct as of 14:20 GMT)
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