Lacklustre industrial production and manufacturing data for the UK saw the Pound get spanked by its currency peers yesterday, and the Canadian Dollar was able to post a reasonable gain against its British rival.
However, with economists looking ahead to next week’s UK inflation data and the Pound beginning to recover its footing the CAD/GBP exchange rate softened as the local session progressed despite crude oil, a major Canadian export, hitting a 14-month high.
The Canadian Dollar Exchange Rate was in the region of 0.6384 against the British Pound as of 15:15 GMT
But the commodity-driven ‘Loonie’ was boosted against another of its main peers.
The North American asset advanced on the neighbouring US Dollar for a third day as the odds of the ‘Greenback’ remaining bullish in the wake of the Federal Reserve tapering stimulus declined.
Gains were limited however as eyes remained firmly focused on the US and investors looked ahead to the publication of minutes from the latest Federal Open Market Committee policy meeting and Fed Chairman Ben Bernanke’s policy announcement.
As one Toronto based economist observed: ‘The fact that the foreign-exchange markets are entirely focused on the Fed at the moment means we haven’t had any strong signals for the Canadian Dollar this week.’
The CAD/GBP exchange rate hit a low of 0.6359 pence per Canadian Dollar
However, industry expert John Curran intimated that the ‘Loonie’ could continue advancing on the US Dollar as a result of overblown expectations surrounding the prospect of Fed easing.
Curran asserted: ‘The risk is certainly to the downside for the US Dollar as this marginal pre-FOMC release selling of the US Dollar has shown. We may not see enough detail to please expectations and an already long US Dollar crowd may want to ring the till on the part of their trades.’
With UK economic news thin on the ground for the remainder of the week, movement in the CAD/GBP pairing could be inspired by Canadian reports, including tomorrow’s new housing price index.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9509 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7418 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6384 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0381 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2120 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5668 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0518 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3481 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8270 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9640 <
(Correct as of 15:15 GMT)
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