Yesterday the ‘Loonie’ was able to climb to the strongest level recorded against the US Dollar since mid-February as Canadian growth data exceeded forecasts.
The Canadian Dollar Exchange Rate was in the region of 0.9911 against the US Dollar as of 15:50 GMT
As Canada posted economic growth of 0.3 per cent in February, rather than the 0.2 per cent forecast, the Canadian Dollar strengthened to 99.28 US Cents.
The ‘Loonie’s gains against its US rival were aided as the ‘Greenback’ broadly softened following an unexpected decline in US business activity.
Yesterday currency strategist Camilla Sutton noted: ‘For Canada, we’ve had better economic data, so that’s encouraging and the broad move in the US Dollar is lower.’
However, HSBC Canadian economist David Watt asserted: ‘Take any move today with a substantial grain of salt. I just don’t expect any strength coming out of this [GDP] report to be sustained, because I think we’re going to see that reversal in March.’
However, the Canadian Dollar continues to trade in the region of 0.9923 US Cents ahead of the conclusion of the Federal Reserve’s influential policy meeting. Industry experts are expecting the FOMC to announce its intention to maintain current levels of bond buying, and more support for this viewpoint came today with the release of another piece of concerning US data.
The latest figures have shown that US manufacturing expanded at its slowest pace for four months in April, with the Institute for Supply Management Factory Index falling from 51.3 to 50.7.
Despite the disappointing result some US economists are remaining upbeat. As Bricklin Dwyer states: ‘We’re in a bit of a lull right now. It’s consistent with the pullback in the broader economy, in consumer spending, business spending and government. We see this as temporary.’
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9911 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7512 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6369 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9641 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1564 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5713 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0078 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3315 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8620 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0369 <
(Correct as if 15:50 GMT)
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