At the close of last week the Canadian Dollar experienced fluctuations following the publication of rather mixed domestic growth data.
On Friday one senior economist said this of the 1.7 per cent quarter-on-quarter Canadian GDP growth recorded in June; ‘Taking the two quarters together, final sales and domestic demand were weak. We expect consumption to soften in the second half of the year as rising long-term interest rates work their way through an already soft economy and prompt households to finally start addressing their growing debt.’
The Canadian Dollar Exchange Rate was in the region of 0.6097 against the British Pound as of 16:15 GMT
Although the ‘Loonie’ recorded a modest gain against the ‘Greenback’ after the figures were published, it shed its advance when US personal spending was shown to have increased by 0.1 per cent, month-on-month.
With North American markets closed for Labour Day, Canadian Dollar movement has been a little stilted, however the ‘Loonie’ has declined against a broadly strengthening Pound.
The CAD/GBP exchange rate hit a low of 0.6083
Better-than-forecast manufacturing data for the UK, coupled with an earlier report showing that UK house price growth accelerated, bolstered the Pound today and helped it hit a high of 1.6440 against its Canadian cousin.
This week several central bank rate decisions are likely to stir up the currency markets.
Of particular importance to the Canadian Dollar is Wednesday’s Bank of Canada rate decision, at which policy makers are expected to hold the benchmark rate at 1.0 per cent.
The Bank of England rate decision, on Thursday, could also act as a catalyst for CAD/GBP movement.
Other Canadian data to look out for in the days ahead includes Friday’s unemployment figures.
Economists have forecast that the nation’s unemployment rate held at 7.2 per cent, with the Canadian economy adding 30,000 positions in August.
If the report surprises (as it has had a habit of doing in recent months) ‘Loonie’ volatility can be expected.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9489 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7195 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6097 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0560 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2151 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6401 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0530 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3890 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8223 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9471 >
(Correct as of 16:20 GMT)
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