Although the Canadian Dollar climbed against its peers yesterday as local existing home sales data exceeded expectations, the commodity-driven currency fell against its US counterpart during local trade.
The Canadian Dollar Exchange Rate was in the region of 0.9811 against the US Dollar as of 14:30 GMT
The ‘Loonie’ continued to trade higher against several of its other main rivals as industry experts look ahead to the first address of new Bank of Canada Governor Stephen Poloz, taking place tomorrow.
The Canadian Dollar slipped to 0.9790 against the US Dollar
However, the expectations surrounding the possible outcome of the Federal Reserve’s two day policy meeting, coupled with some positive US data, caused the Canadian Dollar to slip to 0.9790 US cents.
According to head currency analyst Dean Popplewell: ‘The Canadian Dollar was overvalued and the market is very much happy to own US Dollars and play the percentages. The market is anticipating hawkish rhetoric from the Fed.’
Over in the US data released today showed that housing starts rose by 6.8 per cent in May, slightly less than forecast, while permits to build single-family homes jumped by 1.3 per cent – achieving a five-year high of 622,000.
Meanwhile, a separate report showed that the cost of living in the US increased by less than expected last month, climbing 0.1 per cent in May following April’s 0.4 per cent decline. Economists anticipated an advance of 0.2 per cent.
Yesterday industry expert Shaun Osborne, of TD Securities, intimated that the Canadian Dollar’s recent run of gains could end in the days ahead.
Osborne stated: ‘The focus on the FOMC will perhaps overshadow Bank of Canada Governor Poloz’s maiden speech (also Wednesday). But in the light of his recent comments before a parliamentary committee in Ottawa, which suggested a high degree of continuity between the new and old central bank leadership, the comments may not add much more than we already know – policy will remain on hold in Canada for some time. That may, however, dampen the run up in short-term Canadian rates […]USD/CAD retains a soft bias but the short-term trend lower off the May highs does appear to be slowing. Price patterns through late June suggest a falling wedge pattern – indicating weakening downside pressure on USD/CAD. ‘
While news from the US is still likely to be the main cause of market volatility this week, Friday’s Canadian data (including CPI and retail sales figures) could inspire additional ‘Loonie’ movement.
Economists have forecast that retail sales advanced 0.2 per cent in April after stagnating in March.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9811 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7345 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6290 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0361 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2209 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5884 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0199 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3618 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8189 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9653 <
(Correct as of 14:30 GMT)
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