The Canadian Dollar’s bearish trend with its US rival continued this afternoon as a below-target inflation left the currency lingering in the region of a six-week low. The commodity-driven asset was also trading lower against the Pound as positive UK news and disappointing domestic data piled on the pressure.
The Canadian Dollar Exchange Rate was in the region of 0.6099 against the British Pound as of 15:20 GMT
After broadly weakening yesterday in response to worse than anticipated retail sales figures the ‘Loonie’ extended its longest slump for two months against the US Dollar following the publication of Canadian inflation data.
Inflation increased 1.3 per cent year-on-year, lower than economist’s 1.4 per cent forecast and considerably lower than the Bank of Canada’s target of 2 per cent.
Month-on-month the consumer price index gained by 0.1 per cent rather than the 0.2 per cent predicted.
In response to the figures fixed-income strategist Mark Chandler stated: ‘It was pretty much in the wheelhouse for the Bank of Canada. Broader trends still underscore a lack of price pressures.’
This is the fifteenth month that inflation has remained below target and is yet another sign that the Canadian economy is struggling.
The ‘Loonie’ softened against the majority of its peers after the data was published.
As chief macro strategist David Tulk observed: ‘The lower Canadian Dollar is a reflection of the theme we’ve seen throughout the week, which is weaker data across the board.’
The CAD/GBP exchange rate hit a low of 0.6052
Another factor adversely impacting the ‘Loonie’ was a 5-day slide in Crude oil, Canada’s main export.
Meanwhile, over in the UK GDP figures showed that the British economy expanded by 0.7 per cent in the second quarter, better than the 0.6 per cent growth expected.
Sterling was consequently boosted against its rivals and gained on the Canadian Dollar.
However, the ‘Loonie’ was able to recoup some losses against the US Dollar after US home sales unexpectedly declined by 13.4 per cent in July, significantly more than the 2.0 per cent drop expected.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9521 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7143 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6099 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0548 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2154 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6395 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0562 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4078 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8229 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9481 >
(Correct as of 15:20 GMT)
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