Although the Canadian Dollar strengthened modestly against its US counterpart yesterday after Mark Carney left the benchmark rate unchanged at his last meeting as Governor of the Bank of Canada, the commodity-driven currency has since shed those gains.
The Canadian Dollar Exchange Rate was in the region of 0.9640 against the US Dollar as of 14:45 GMT
US data showing a larger than expected increase in consumer spending in the first quarter of the year has added to the recent signs of economic stability returning to the US, prompting investors to speculate that the Federal Reserve may bring quantitative easing to an end in the months ahead.
Consumer spending is responsible for almost three-quarters of total US economic growth and the revised 3.4 per cent annualised gain was better than the 3.2 per cent previously estimated, as well as being 0.1 per cent more than economists forecast.
Although US total GDP did not expand by quite as much as expected in Q1 (growing at an annual rate of 2.4 per cent instead of the initial 2.5 per cent estimated) the Canadian Dollar still dropped to 96.46 against the US Dollar.
Losses were limited however as separate reports showed that Canada’s current account deficit narrowed by more than anticipated in the first three months of the year thanks to rising commodity exports.
Following the publication of today’s key figures currency strategist Jeremy Stretch observed: ‘People look at those GDP numbers and think that’s not much short of expectations, and consumption was actually ok. With the current account looking slightly better, or at least not as bad as feared, that has seen Dollar/CAD at least temporarily come off the session highs.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9640 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7434 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6371 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0036 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1932 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5705 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0367 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3455 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8422 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9964 <
(Correct as of 14:45 GMT)
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