As Canadian markets reopened following a national holiday, the ‘Loonie’ extended declines against a bullish Pound. The British currency was supported against its commodity-driven peer by stronger-than forecast housing and industrial production data.
The Canadian Dollar Exchange Rate was in the region of 0.6281 against the British Pound as of 14:00 GMT
However, the North American asset went on to recoup some losses as data revealed that a rebound in exports caused Canada’s trade deficit to narrow in June.
The trade gap eased from 781 million Canadian Dollars in May to 469 million Canadian Dollars in June.
Exports were up 1.4 per cent following two previous months of 2.5 per cent declines.
The CAD/GBP exchange rate hit a low of 0.6257
The ‘Loonie’ also dipped against the US Dollar, as investors look ahead to this week’s Canadian employment figures.
Given that last week’s US non-farm payrolls figure failed to hit forecasts, economists are now expecting that Canada’s employment report will also disappoint.
It has been predicted that Friday’s report will show that the Canadian economy added 10,000 jobs in July, following June’s 400 decline.
Although this week’s other Canadian data, including tomorrow’s buildings permits figures for June and Ivey Purchasing managers index for July, will be of interest, the employment report is most likely to inspire volatility.
As forex expert Blake Jespersen notes: ‘All eyes this week are on the employment number in Canada. Maybe markets are expecting a slightly weaker number after the disappointment in the US.’
The Canadian Dollar’s decline against the ‘Greenback’ was exacerbated by the news that the US trade deficit narrowed by more than expected in June, hitting its lowest level since 2009.
The deficit contracted to 34.2 billion Dollars from a revised 44.1 billion Dollars. Economists envisaged the gap narrowing to 43.5 billion Dollars.
This result is a sign that second quarter growth in the US may be stronger than originally estimated.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9639 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7256 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6281 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0750 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2223 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5922 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0374 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3773 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8095 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9308 >
(Correct as of 14:00 GMT)
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