As local trade began the Canadian Dollar lost ground against its US counterpart as the ‘Greenback’ broadly strengthened ahead of Friday’s all important non-farm payrolls report.
The Canadian Dollar Exchange Rate was in the region of 0.9672 against the US Dollar as of 14:30 GMT
Despite yesterday’s mixed US trade data, the US Dollar rallied against its peers as investors speculated on the potential outcome of this week’s labour data. A positive result may prompt the Fed to begin paring its current bond-buying programme in the months ahead – a circumstance which could boost the ‘Greenback’ against its rivals.
As Toronto based currency strategist Camilla Sutton noted: ‘Everyone’s just a little hesitant moving into the jobs data later in the week […] It’s probably the most important nonfarm figures we’ve had in years.’
CAD/USD exchange rate little changed after Building Permit data
As far as domestic data goes, after recording a negatively revised gain of 6 per cent in the value of municipal permits in March Canadian building permits rose by 10.5 per cent in April, defying economist expectations for a 3 per cent decline. Building permits have now climbed for four consecutive months – the most significant run of increases for ten years.
April’s unforeseen rise in building permits was led by applications for multiple-unit housing in Vancouver.
This data conflicts with other recently released Canadian reports which indicate that the nation’s previously hot housing market is beginning to cool.
After the figures were published the CAD/USD exchange rate was little changed, but the commodity driven currency was able to advance on its Australian and New Zealand counterparts. The CAD/USD pairing went on to fluctuate as a private report indicated that the rate of hiring in the US slowed in May. Friday’s non-farm payment report will give a more definitive picture of the state of the labour market.
As one industry expert observed: ‘The Canadian Dollar is very much driven by the external picture – it’s all about employment in the US on Friday. We’ve had a little bit more of a move on the back of some slightly disappointing data out of the US.’
The pairing could experience additional movement in the hours ahead as a result of US manufacturing data. Tomorrow’s Canadian Ivey Purchasing Managers Index will also be of interest.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9672 –
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7399 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6303 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0119 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2061 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5879 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0337 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3506 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8288 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9883 <
(Correct as of 14:30 GMT)
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