On Friday some less-than-impressive manufacturing data caused the ‘Loonie’ to soften against its US counterpart. However, the currency has recouped losses today on the strength of better-than-forecast domestic data and expectations surrounding the Federal Open Market Committee policy meeting.
The Canadian Dollar Exchange Rate was in the region of 0.9844 against the US Dollar as of 14:30 GMT
As local trade began a Canadian existing home sales report compiled by the nation’s Real Estate Association showed a surge in sales from April to May.
Although unadjusted actual sales for May were down 2.6 per cent year-on-year, sales activity leapt by 3.6 per cent in May month-on-month.
The result shows a substantial rebound in the housing sector during the spring following the declines recorded in the winter.
In response to the existing home sales figures one chief economist asserted: ‘Canadians remain confident about the value of home ownership. Job market trends and low interest rates remain supportive for Canada’s housing sector, so we remain upbeat about prospects for sales and average prices this year and next.’
Prior to the release of the housing data the Canadian Dollar climbed as a separate report showed that foreign investors purchased the most Canadian securities for seven months in April. The currency was also supported as crude oil (Canada’s most important export) gained and industry experts speculated on the outcome of the Federal Reserve’s two day policy meeting, which begins tomorrow.
Canadian Dollar modestly extends gains against the US Dollar
The result allowed the Canadian Dollar to modestly extend gains, climbing to 0.9849 US cents.
On Wednesday Bank of Canada Governor Stephen Poloz is due to deliver his first address in his new role. The stance he adopts regarding domestic monetary policy is likely to inspire movement in the ‘Loonie’.
As currency strategist Jeremy Stretch comments: ‘I would prefer to be cautiously long Dollar/Canadian Dollar as Mr Poloz will probably eschew any early action from the rates side whilst the Fed should maintain the perception of tapering coming even though it’s not imminent. That’s causing people to be sitting on their hands.’
Home-grown data of interest this week includes Canadian wholesale sales for April, Bank of Canada CPI and Canadian retail sales figures.
Current Canadian Dollar (CAD) Exchange Rates:
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9844 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7380 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6258 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0257 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2177 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5976 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0157 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3547 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8188 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9749 >
(Correct as of 14:30 GMT)
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