The ‘Loonie’ rallied valiantly overnight following yesterday’s disappointing-GDP-inspired decline. However, the commodity-driven currency proved unable to retain gains and softened against its peers as US employment data drew investor focus.
The Canadian Dollar Exchange Rate was in the region of 0.6382 against the British Pound as of 14:30 GMT
The expectation that tomorrow’s employment data will show a decline in the US jobless rate, and so spur the Federal Reserve into tapering stimulus, worse on the ‘Loonie’ during the local session.
Declines against the Pound were mainly driven by positive UK news.
A report published this morning showed that UK manufacturing PMI expanded by more than forecast while the Bank of England opted to maintain its current level of asset purchases and leave rates unchanged – indicating that the Monetary Policy Committee is getting behind new Governor Mark Carney and acknowledging recent improvements in the UK economy.
The CAD/GBP exchange rate hit a low of 0.6364
The Canadian Dollar slipped against the ‘Greenback’ as the US currency was supported by data showing that US jobless claims had dropped to their lowest level for over five years.
As currency strategist Adam Cole observes: ‘CAD is down against a generally stronger Dollar. I suspect the market is priced in for a decent payrolls release. The data have been close to expectations most months recently.’
While the US employment data is likely to be the main driver of market movement tomorrow, the CAD/GBP may also fluctuate as a result of UK housing and construction reports. The Nationwide House Price figure is expected to show a seasonally adjusted gain of 0.4 per cent in June. Meanwhile, UK construction PMI has been forecast to climb from 51 to 51.5. If these results surprise to the upside the Pound could consolidate gains and advance further on the Canadian Dollar.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9712 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7335 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6382 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0853 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2213 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5659 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0303 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3633 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8185 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9220 <
(Correct as of 14:30 GMT)
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