While this morning’s impressive industrial/manufacturing reports for the UK boosted the Pound against its peers, the Canadian Dollar went on to recover ground as commodity prices climbed.
The Canadian Dollar Exchange Rate was in the region of 0.5973 against the British Pound as of 17:00 GMT
Canada’s main export, crude oil, moved away from a five month low and helped the Canadian Dollar strengthen.
Futures of crude oil climbed by 1.2 per cent.
According to market analyst Joe Manimbo; ‘Any time you see oil appreciate, that tends to be supportive of Canada’s currency. But I just think the broader market move is one where the Dollar has ceded some ground on caution before the US numbers.’
Meanwhile, although the ‘Loonie’ was adversely affected by domestic building permits data, which showed a 1.7 per cent gain in permits rather than the 6.0 per cent gain expected, a stronger-than-anticipated Ivey purchasing managers index lent the commodity-driven currency support.
The gauge surged from 51.9 to 62.8 in October rather than advancing to 52.0 as expected.
The CAD/GBP exchange rate hit a low of 0.5932
The result was the highest since May and supports the argument that Canada’s economic recovery is gathering momentum.
The CAD/GBP pairing was also able to advance as the NIESR UK GDP estimate for October came in at 0.7 per cent, down from 0.8 per cent the previous month.
While an upbeat statement from the Bank of England following tomorrow’s rate decision could help the Pound recoup today’s losses against the Canadian Dollar, investors will also be looking ahead to Friday’s Canadian employment data.
Economists are forecasting that the nation’s economy added 13,500 positions in October, with the unemployment rate rising to 7.0 per cent.
A positively surprising result could help the ‘Loonie’ end the week on a high.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9595 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7099 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5973 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0092 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1593 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6742 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0433 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4087 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8736 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9909 <
(Correct as of 17:00 GMT)
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