The US Dollar rallied against the majority of its most traded peers including the Pound and Euro after September’s Durable Goods data rose by its biggest margin in three months on increased demand for military and commercial aircraft.
After the data was published the ‘Greenback’ edged away from the two-year low it had been suffering from for much of the week against the Euro. According to the US Commerce Department, orders for goods expected to last for at least three years climbed by 3.7%, beating economist expectations for a 2.3% increase.
Signs that the recent government shutdown impacted on the US economy was made evident in the data after demand for capital equipment fell by 1.1%.
“Investment spending has been really soft this year, you’d expect to see rip-roaring investment because the groundwork is there, but you keep getting these uncertainty shocks, these policy shocks. People are going to hold off on investment because they’re not really sure” said Joshua Dennerlein, an economist at Bank of America Corp.
The latest Confidence data for the US also highlighted the impact of the fiscal impasse. Confidence fell from 75.2 to 73.2 in October.
Earlier in the session the Dollar softened against the Pound following the release of positive GDP data for the UK. The report compiled by the Office for National Statistics showed that the UK service sector has made a full recovery by growing by 0.7% and is now 0.4% stronger than it was prior to the downturn. Manufacturing is 8.9% below it and construction is 12.5% lower than pre-downturn levels. One bright spot for the construction sector was that it had expanded by 2.5% over the quarter, its second consecutive quarter of growth. The overall economy expanded by 0.8% in the third quarter of the year and increased the likelihood that the Bank of England will raise interest rates sooner than it had expected.
The Canadian Dollar meanwhile fell to a seven-week low against its US relation after the Bank of Canada embraced a more accommodative monetary policy and as the value of crude oil, the nation’s biggest export tumbled to its weakest level since June. Against the Pound the ‘Loonie’ traded beyond a fresh three-and-a-half year low.
The next piece of key economic data due for release for Canada is the GDP report for August which is due for publication on the 31st of October. In the meantime the currency is likely to be heavily influenced by events in the USA and Eurozone.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6176
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7248
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0445
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6190
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3796
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9573
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.6939
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5913
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6911
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0445
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4410
(Correct as of 15:10 pm GMT)
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