After the Bank of England opted to hold rates at record lows and leave the level of asset purchases unchanged the Pound largely retained gains achieved earlier in the week as a result of surprisingly strong manufacturing, construction and service sector data for the UK. Consequently, the CAD/GBP pairing experienced only moderate fluctuations in spite of the ‘Loonie’ strengthening ahead of tomorrow’s Canadian employment report.
The Canadian Dollar Exchange Rate was in the region of 0.6102 against the British Pound as of 14:45 GMT
The expectation that tomorrow’s domestic employment data will show that the Canadian economy added jobs for the first time in two months helped the nation’s currency advance on peers like the US Dollar.
Economists have forecast that the employment report, due for publication at 13:30 GMT, will show that the economy added 20,000 positions in August, after losing 39,400 the previous month.
US legislators taking the first step to approving a military strike on Syria also boosted the price of crude oil, which lent further support to the commodity-driven Canadian Dollar.
The CAD/GBP exchange rate hit a low of 0.6077
In response to the currency’s movement London-based currency strategist Jane Foley stated: ‘There’s been a lot of gloom hanging over Canada in recent months, so given that’s the way the market is positioned, when you do get forecasts for better data, then clearly that has a brightening effect. [If the result hits estimates] the market will start to evaluate if the economy is going to improve from here.’
However, gains against the US Dollar were limited as the safe-haven asset strengthened following the publication of domestic initial jobless claims data.
The fact that US jobless claims declined by more than anticipated in the week ending August 31 bodes well for tomorrow’s far more influential US non-farm payrolls report. Further signs that the US employment sector is improving will increase the likelihood of the Federal Reserve tapering stimulus this month.
While tomorrow’s Canadian employment figures will be a major source of ‘Loonie’ movement, fluctuations in the CAD/GBP pairing could also occur in reaction to UK industrial/manufacturing production and trade balance figures – due out at 09:30 GMT
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9540 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7262 >
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: 1.0439 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2117 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6385 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0483 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3845 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8263 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9579 <
(Correct as of 14:45 GMT)
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