As European markets opened the Canadian Dollar was trading slightly lower against the Pound and US Dollar. The commodity-driven currency declined under the combined pressure of Federal Reserve stimulus expectations and the expectation that today’s domestic growth data would reinforce the disparity between Canadian and US economic recovery.
The Canadian Dollar Exchange Rate was in the region of 0.6263 against the British Pound as of 14:20 GMT
However, the ‘Loonie’ was able to recoup losses as the Canadian economy was shown to have expanded by ever so slightly more than forecast.
Before the gross domestic product figures were published, a foreign exchange expert with the Bank of Montreal observed: ‘The market is still thinking the Dollar is heading higher in the medium term and trying to position for that. It’s just people looking at the growth outlook for the US and seeing the Dollar rallying across the board, not just against Canada.’
Although economists expected that the Canadian economy stagnated in April after growing by 0.2 per cent in March, it actually expanded by 0.1 per cent.
A small advance, but an advance none the less. This gain also marks the longest run of monthly GDP growth since September 2011.
The report compiled by Statistics Canada showed that the decline in goods output was compensated by the expansion of services.
The Canadian Dollar to Pound exchange rate hit a high of 0.6286
In response to the news chief economist David Watt stated: ‘It does suggest the Canadian economy had a bit more momentum than I expected in April [but] the Canadian economy is still muddling along trying to reach 2 per cent growth. There’s nothing here that signals the Dollar will break out of its range.’
Additional Canadian Dollar movement may occur before the weekend due to the publication of US business activity and consumer confidence data, both of which are expected to show improvement.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9547 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7294 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6263 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0344 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2228 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5957 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0476 –
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3722 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8161 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9668 <
(Correct as of 14:20 GMT)
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