Home » EUR » Exchange Rate News for Canadian Dollar: ‘Loonie’ trades above Parity with US Rival

Exchange Rate News for Canadian Dollar: ‘Loonie’ trades above Parity with US Rival

Canadian Dollars

The Canadian Dollar Exchange Rate was in the region of 1.0022 against the US Dollar as of 09:50 am

After yesterday’s mixed results over the course of trade the Canadian Dollar began today more strongly, despite crude oil (Canada’s main export) shedding 0.5 per cent. Losses in the commodity-driven currency were tempered as it received a modest boost by surprise GDP figures.

Although the median estimate of economists was for growth of 0.2 per cent – an increase of 0.1 per cent from the previous month – the actual figure came in at 0.3 per cent with the Canadian economy expanding to an annualised 1.56 trillion Canadian Dollars.

The result let to investors upping the odds of the Bank of Canada raising interest rates by the close of 2013.

The ‘Loonie’ experienced fluctuations immediately following the data release, but later advanced by 0.4 per cent on the US Dollar, trading above parity with its American counterpart for the first time in a week.

As one foreign exchange specialist stated: ‘Slightly better-than-expected Canadian GDP data is assisting the Canadian Dollar. We’re running into support levels for the US, resistance for Canadian, right here, which would be right around the 200-day moving average.’

Signs of business expansion in the US also lifted the ‘Loonie’.

Adam Button, a currency analyst, was quoted as saying: ‘The Canadian Dollar today is back down before parity, and parity is that massive magnet that seems to govern Dollar/Canadian Dollar trading. The catalyst was that the Chicago PMI was really strong. Canada is exporting raw materials to American factories and if they’re ramping up production that’s a continued sign of output from Canada and it’s a great reason to buy the Canadian Dollar.’

An absence of Canadian economic news means that additional ‘Loonie’ fluctuations are likely to occur in response to developments in the US.

US Non-Farm Payrolls data, a key economic indicator, is scheduled for release this afternoon. A strong result could increase confidence in the recovery of the world’s largest economy and push the Canadian Dollar higher before the close of trade.

Current Canadian Dollar Exchange Rates

The Canadian Dollar to Euro exchange rate is currently trading at 0.7347

The Canadian Dollar to Pound Sterling exchange rate is currently trading at 0.6322

The Canadian Dollar to US Dollar exchange rate is currently trading at 1.0022

The Canadian Dollar to Australian Dollar exchange rate is currently trading at 0.9664

The Canadian Dollar to New Zealand Dollar exchange rate is currently trading at 1.1895                        

The Canadian Dollar to Emirati Dirham exchange rate is currently trading at 3.6663

The Canadian Dollar to Swiss Franc is currently trading at 0.9084

The Canadian Dollar to Japanese Yen exchange rate is currently trading at 92.3000

Comments are closed.