As the Canadian Dollar advanced on the Pound following the publication of disappointing construction output figures for the UK, the commodity-driven currency fell from its recent three-week high against the US Dollar.
The Canadian Dollar Exchange Rate was in the region of 0.6373 against the British Pound as of 15:30 GMT
With construction output in the UK contracting by 3.4 per cent in May rather than the 2.8 per cent expected, the still-pressured Pound weakened against its Canadian rival.
The ‘Loonie’ dipped against the US Dollar prior to the release of the University of Michigan confidence gauge, which economists forecast would rise to the highest level in six years.
In response to the commodity-driven currency’s movement currency analyst Eimear Daly asserted: ‘We’re getting people pulling back into the Dollar even after the massive sell-off we saw yesterday, In terms of interest-rate differentials, it definitely favours the US Dollar over the Canadian Dollar.’
However, instead of climbing from 84.1 to 84.7 as forecast the index actually dropped to 83.9 in July.
The CAD/GBP exchange rate hit a low of 0.6373 pence per Canadian Dollar
Although this level is still significantly higher than the average recorded over the US recession (64.2) it still isn’t up to pre-slump levels of 89.
The unexpectedly poor result led economist Ryan Wang to state: ‘The volatility in the financial markets over the last month may have arrested the upward trend in sentiment. In the second half, I think you’ll still get some benefit from the upward trend in home prices but I think consumer confidence is likely to be volatile for the rest of the year.’
Separate US data showed that producer priced climbed by 0.8 per cent in June, beating expectations.
The most influential piece of Canadian data due for publication next week is the Bank of Canada’s rate decision, taking place on Wednesday.
Although the central bank is expected to hold rates, any comments issued by new Governor Stephen Poloz will be of interest.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9623 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7390 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6373 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0619 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2255 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5694 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0373 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3529 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8123 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9421 <
(Correct as of 15:30 GMT)
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