Yesterday the Canadian Dollar was able to rebound from a 21-month low against the US Dollar as the price of crude oil, a major Canadian export, rose to beyond 100 Dollars per barrel.
The commodity-driven currency also advanced on peers including the New Zealand and Australian Dollars, but declined against the Pound as the British asset climbed in response to stronger than expected services PMI for the UK.
The Canadian Dollar Exchange Rate was in the region of 0.6294 against the British Pound as of 14:35 GMT
However, the Canadian Dollar was able to advance on the Pound today after the Bank of England’s pessimistic policy statement led to Sterling broadly softening.
The CAD/GBP exchange rate hit a low of 0.6198
But the ‘Loonie’ fell against its American counterpart as the price of crude oil dropped following the removal of Egyptian President Mohamed Mursi. With Mursi no longer in power, fears that oil supplies would be disrupted by political upheaval have eased.
The expectation that tomorrow’s employment report will show that Canada lost 7,500 jobs last month (following May’s mammoth gain of 95,000 positions) also weighed on the currency.
Conversely, a separate report is expected to show that the US economy added 165,000 jobs in June.
Toronto-based currency strategist Camilla Sutton said of the development: ‘I think there’s been some easing in terms of international tensions and that may have some people wondering where oil prices go from here. [US] Non-farm is by far the bigger release for Canada. I think markets will be really forgiving of a weak Canadian data print just because of how much we performed last month.’
In global economic news, the BoE and European Central Bank opted to keep rates unchanged at their respective policy meetings.
The ECB did assert that fiscal policy would remain accommodative for as long as possible, positive news for commodity-driven and emerging market currencies.
Tomorrow’s Canadian employment data is due for release at 12:30 GMT, as are US non-farm payrolls figures.
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9492 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7376 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6294 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0402 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2251 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5848 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0553 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3558 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8162 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9620 >
(Correct as of 14:35 GMT)
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