‘Loonie’/Sterling movement was a little limited today due to a lack of influential Canadian or UK economic news. However, the Canadian Dollar was able to retain yesterday’s advance against its British rival and trade in the region of 0.635 pence per Dollar.
The Canadian Dollar Exchange Rate was in the region of 0.6366 against the British Pound as of 15:10 GMT
Data showing that a Canadian industrial product price gauge advanced by more than expected in June had little effect on the ‘Loonie’. Industrial product price rose by 0.3 per cent month-on-month rather than the 0.2 per cent forecast. A weak currency bolstering the price of motor vehicles was largely responsible for the bigger-than-predicted gain.
Year-on-year industrial prices advanced 0.6 per cent.
Meanwhile, Canada’s raw materials price index climbed by 0.3 per cent, less than the 0.5 per cent gain forecast.
The CAD/GBP exchange rate hit a high of 0.6376
Although the ‘Loonie’ rose to a month high against the US Dollar yesterday as a result of strongly performing crude oil, the commodity-driven currency experienced a little volatility during the local session as the Federal Open Market Committee’s two-day policy meeting began.
While the FOMC is expected to leave policy unaltered, the tone of the accompanying policy statement (and any references to a potential timeline for tapering US quantitative easing) could inspire significant market volatility.
As Toronto-based industry expert Blake Jespersen observed: ‘The Fed will eventually start to pull back on their programme and the Canadian Dollar will weaken off. Our bias is to look for good opportunities to sell the Canadian Dollar on rallies.’
However, the Canadian Dollar later strengthened against the ‘Greenback’ as US consumer confidence was shown to have declined by more than anticipated. While economists expected the gauge to dip from 82.1 to 81.3 it actually fell to 80.3 – reducing the odds of the Federal Reserve tapering stimulus in September.
While US news will be dominating headlines tomorrow, CAD/GBP fluctuations could result from the publication of UK consumer confidence figures – due out at 00:05 GMT.
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9742 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7334 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6366 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0724 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2068 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5706 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0262 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3635 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8244 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9325 <
(Correct as of 15:10 GMT)
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