The Canadian Dollar has reached its strongest level in three weeks against the US Dollar after data showed that the cost of living in the States rose more than expected due to a big jump in petrol prices.
The ‘Loonie’s’ gain is the first time the currency has strengthened against the ‘Greenback’ in six weeks, on March the 1st it hit an eight-month low due to concerns over the state of the Canadian economy. On the 8th of March the currency saw some support after both of the North America nation’s posted better than expected new jobs data for February.
“You look at the extent of the move over the last five weeks, it had been a fairly one-way street,” Matthew Perrier, director of foreign exchange at Bank of Montreal, told Bloomberg, “The trade was getting a little crowded on the short Canada side versus the U.S. and I’m not overly surprised to see a bit of a correction here, but it remains just a correction.”
Friday’s gain came after the US consumer price index increased by 0.7% marking its first increase in four months and its biggest since June 2009. Most economists had been predicting a rise of 0.5%. 75% of the index’s gains have been blamed on a surge in the price of petrol.
Next Thursday sees the release of the latest Canadian retail sales data.
Current CAD Exchange Rates
The Euro to Canadian Dollar (EUR/CAD) exchange rate is trading at 1.3345
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trading at 1.5465
The US Dollar to Canadian Dollar (USD/CAD) exchange rate is trading at 1.0216
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