Last week’s less-than-impressive Canadian employment figures saw the ‘Loonie’ flounder against its peers as local trade came to a close.
However, the commodity-driven currency has been able to advance today on the expectation that US retail sales rose for a fourth month.
The Canadian Dollar Exchange Rate was in the region of 0.6273 against the British Pound as of 14:45 GMT
As the US is Canada’s largest trading partner, climbing retail sales for the former nation would boost the economic outlook of the latter.
However, while the ‘Loonie’ advanced on peers like the Pound and Euro it slipped against the US Dollar as the ‘Greenback’ strengthened on investor speculation concerning the likelihood of a strong retail sales report pushing the US Federal Reserve into tapering stimulus in the months ahead.
It has been forecast that US retail sales climbed by 0.3 per cent in July, month-on-month, following June’s 0.4 per cent advance.
If accurate this would be the fourth consecutive month of retail sales gains.
The CAD/GBP exchange rate hit a high of 0.6294
In response to the Canadian Dollar’s movement economist David Watt observed: ‘They’re our major trading partner and, to the extent the US economy has been lacklustre over the past few years, that’s been one of the reasons the Canadian Dollar has underperformed one of its peers, such as the Australian Dollar. The Canadian Dollar should have a little more traction against other currencies even if it doesn’t keep pace with the US Dollar.’
The most influential Canadian economic news scheduled for release this week, the nation’s existing home sales data, is due out on Thursday.
For much of the week fluctuations in the CAD/GBP pairing are most likely to be driven by UK data, including employment and retail sales figures.
The publication of minutes from the Bank of England’s latest policy meeting (on Wednesday) will also be of interest.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9706 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7304 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6273 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0582 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2052 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5948 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0303 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3693 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8264 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9449 >
(Correct as of 14:45 GMT)
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