With US retail sales gaining by half the amount forecast, the Canadian Dollar declined modestly against its US counterpart, trimming last week’s impressive 1.8 per cent 5-day gain.
The Canadian Dollar Exchange Rate was in the region of 0.6367 against the British Pound as of 14:30 GMT
The commodity-driven currency also dipped against several of its other main peers (including the Pound) as the price of crude oil, a major Canadian export, dipped.
Following the ‘Loonie’s movement currency strategist Greg T. Moore noted: ‘This fits with the broader theme this morning, which is a broad bid for the US Dollar. A lot of it is really a consolidation retracement of last week’s move.’
News that US retail sales climbed by 0.4 per cent in June, rather than the 0.8 per cent expected, indicates that consumer spending in the world’s largest economy may take some time to gather momentum following this year’s series of spending cuts and tax increases. May’s figure was negatively revised to 0.5 per cent.
This latest piece of disappointing US data could fuel speculation that the Federal Reserve will refrain from tapering stimulus until at least the end of this year. Although this would boost commodity-driven and emerging market currencies, as the US is Canada’s largest trading partner a lowered growth outlook for the former nation would have negative repercussions for the latter.
The CAD/GBP exchange rate hit a low of 0.6337 pence per Dollar
However, ‘Loonie’ losses were limited following the release of some better than expected domestic news.
According to the Canadian Real Estate Association, sales of existing homes in Canada surged by 3.3 per cent from May to June. Non-seasonally adjusted actual sales were 0.6 per cent lower than the same period of the previous year.
CREA’s home price index climbed 2.3 per cent in June year-on-year.
In a light UK news day the Pound has experienced limited movement. The British currency was largely unchanged this morning after housing data showed that home prices rose to record highs.
Canadian data to look out for in the days ahead includes Wednesday’s Bank of Canada rate decision and Friday’s CPI figures.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9610 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7370 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6367 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0588 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2318 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5706 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0396 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3569 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8082 –
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9442 >
(Correct as of 14:30 GMT)
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