Yesterday the Canadian Dollar softened against the Pound and brushed a week low against its US counterpart. Although the ‘Loonie’ has since recovered ground against Sterling, the currency’s respite from a bearish relationship with the ‘Greenback’ proved brief.
The Canadian Dollar Exchange Rate was in the region of 0.6046 against the British Pound as of 14:45 GMT
Data showing that the UK economy expanded by less-than-expected in the second quarter, year-on-year, caused the Pound to decline against almost all of its most traded rivals during European trading.
Britain’s current account deficit for the first quarter was also negatively revised to the widest level since 1955 and CAD/GBP advanced in response to these less-than-impressive results.
However, while the ‘Loonie’ rose against the ‘Greenback’ and extended its advance on the Pound as crude oil climbed for the first time in six days, CAD/USD gains were pared following the publication of several positive pieces of US data.
Although US growth wasn’t upwardly revised to 2.6 per cent in the second quarter, as expected, the 2.5 per cent expansion was still a considerable improvement on the expansion of 1.1 per cent recorded in the first quarter.
The CAD/GBP exchange rate hit a high of 0.6061
US initial jobless claims also fell by more-than-expected, coming in at 305,000 rather than the 325,000 forecast.
In response to the ‘Loonie’s movement forex strategist Greg Anderson commented; ‘The claims number is a very good number – if anything, this should bring some US Dollar strength. We seem to have stabilised in terms of what’s happening with oil prices. If oil prices stay here and if we get a big payrolls number for the US, we could bounce back to C$1.04, C$1.05 fairly quickly.’
Before the weekend, further movement in the CAD/GBP pairing could occur in reaction to the UK GfK consumer confidence survey, due for release at 00:05 GMT. A gain from -13 in August to -11 in September has been forecast.
Canada’s average weekly earnings report could also be of interest, but the CAD/USD pairing is most likely to be driven by tomorrow’s US personal income/spending reports and the University of Michigan’s confidence index.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9705 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7186 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6046 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0351 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1705 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6539 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0309 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3910 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8531 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9661 >
(Correct as of 14:45 GMT)
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