The Canadian Dollar continues to slide against the Pound slumping to its lowest level since December 2009 and touched a two-year against the US Dollar.
The ‘Loonie’ fell against the majority of its peers after the latest RBC Manufacturing PMI data declined in November adding to concerns created by last week’s data which showed that the nation’s weak exports in the last quarter hint that an economic slowdown could be on the cards.
Sterling pushed higher against the ‘Loonie’ following the release of manufacturing data which showed that the UK economy is strengthening at a rapid pace. New orders jumped to their highest level in almost 20 years.
The decline was also caused by expectations that this week’s Bank of Canada policy meeting will result in a dovish statement regarding the economy. Last week saw the release of positive GDP figures but even they were not enough to halt the Canadian Dollar’s decline.
“Friday’s stronger-than-expected quarterly GDP print, rising 2.7% annualized, and increasing evidence of an uptick in the global manufacturing cycle have been ignored by CAD traders as the market focuses on the risk surrounding Wednesday’s BoC meeting and the potential for a more dovish turn by Governor Poloz.
‘We do expect the BoC to strike a dovish tone; however it is highly unlikely that they warn of interest rate cuts considering the risks surrounding financial stability (even as the government introduced late last week a new risk fee on CMHC mortgages beginning January 1, 2014),” said chief currency strategist Camilla Sutton.
Wednesday will also see the release of New Housing Price Index data for November.
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9397
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.6941
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5741
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0638
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4407
(Correct as of 14:45 pm GMT)
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