Hopes that US lawmakers may reach an agreement and bring an end to the Federal shutdown inspired ‘Loonie’ fluctuations on Thursday.
The Canadian Dollar Exchange Rate was in the region of 0.6037 against the British Pound as of 15:20 GMT
While the commodity-driven asset was little changed against Sterling after advancing yesterday in response to poor UK data, the Canadian Dollar edged away from a four-week low against its US counterpart as risk-appetite received a modest boost.
Although a compromise has yet to be reached, indications that Republican and Democratic policymakers may consider increasing the debt ceiling in order to avoid a default modestly brightened the global economic outlook and the ‘Loonie’ snapped three-days of declines as a result.
The CAD/GBP exchange rate hit a low of 0.6010
In response to the currency’s movement Toronto-based forex-trader David Bradley commented; ‘As it looks as though we’re getting closer to resolution, that’s probably the reason why we’ve seen equities rally and bond yields pick up, which is probably helping the Canadian Dollar. We’re still basically in the range we saw yesterday’.
Although disappointing US employment data wore on the ‘Greenback’, CAD/USD gains were limited as Canadian housing data failed to meet expectations.
In August Canada’s new house price index climbed 0.1 per cent month-on-month rather than the 0.2 per cent expected as Ottawa home prices posted their first annual decline since 1998.
Meanwhile, in the week ending October 5th US jobless claims jumped by 66,000 – considerably higher than estimated and an indication of the Federal shutdown’s widespread impact. As US employment is one of the main factors driving Federal Reserve fiscal policy decisions, signs of a slowdown in the labour sector will lower the odds of the Fed tapering stimulus in the months ahead and dent the US Dollar’s appeal in the process.
However, the ‘Loonie’ was unable to capitalise on the negative news as investors focused on the US debt ceiling debate and looked ahead to tomorrow’s Canadian employment data.
Economists are expecting tomorrow’s reports to show that the Canadian economy added 15,000 jobs in September following Augusts’ 59,200 gain.
The Canadian unemployment rate is expected to hold at 7.1 per cent.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9622 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7123 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6037 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0198 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1657 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6552 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0394 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4042 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8568 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9802 >
(Correct as of 15:20 GMT)
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