While a bullish Pound is limiting CAD/GBP gains, the Canadian Dollar’s positive week against its US counterpart continued during the North American session.
The Canadian Dollar Exchange Rate was in the region of 0.6137 against the British Pound as of 14:20 GMT
The commodity-driven asset advanced on the ‘Greenback’ and several of its other most traded peers as better-than-expected domestic data brightened Canada’s economic outlook and raised speculation regarding when the central bank will opt to raise lending rates.
After the Reserve Bank of New Zealand intimated that interest rates will be increased next year the odds of the Bank of Canada following suit increased and the ‘Loonie’ consequently climbed, approaching an almost month-high against the US Dollar.
As currency strategist Camilla Sutton noted; ‘The RBNZ was interesting yesterday because they certainly shifted from a slightly hawkish bias to a fully hawkish bias, suggesting they’ll hike rates next year. The performance of the New Zealand Dollar is interesting in relation to Canada, as at some point the Bank of Canada will make a similar shift.’
Meanwhile, the encouraging tone of Bank of England Governor Mark Carney’s testimony to parliament bolstered the Pound and helped the British currency outperform its Canadian rival.
The CAD/GBP exchange rate hit a low of 0.6114
However, ‘Loonie’ gains against peers like the ‘Aussie’ were consolidated as Canada’s housing price index showed a larger than expected gain, with prices climbing by 0.2 per cent in July month-on-month rather than the 0.1 per cent forecast.
With US initial jobless claims showing a surprising drop, largely due to technological malfunctions in two states and underreporting, the CAD/USD pairing fluctuated.
The US report, which showed claims for unemployment benefit hit their lowest level since April 2006, prompted this response from industry expert Millan Mulraine; ‘Stronger job growth may be on the horizon. When we start seeing improvement in the labour market I think that will provide another tailwind for confidence, and spending, going forward.’
Before the weekend CAD/GBP movement may be limited due to a lack of significant economic news, but US confidence and retail sales figures will be the catalyst for CAD/USD volatility.
Current Canadian Dollar (CAD) Exchange Rates:
< Down > Up
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9696 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7301 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6137 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0476 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1923 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6303 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0319 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3701 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8394 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9550 <
(Correct as of 14:20 GMT)
Comments are closed.