At the beginning of a fairly light news week, the Canadian Dollar is little changed against the Pound after posting a five-day decline against the British currency before the weekend.
With the UK’s economic outlook bolstered by several pieces of encouraging data and the Confederation of British Industry upwardly revising the nation’s growth forecasts for 2013/2014 Sterling remains supported and maintains a bullish relationship against peers including the Canadian Dollar.
The Canadian Dollar Exchange Rate was in the region of 0.6190 against the British Pound as of 14:20 GMT
As the North American session got underway the ‘Loonie’ was little changed against its US counterpart, retaining declines sustained last week as positive US news highlighted Canada’s own economic shortcomings.
The odds of the US Federal Reserve tapering stimulus when it meets next month have increased in the wake of recent US employment and retail sales data, with 65 per cent of economists now expecting the current 85 billion Dollars worth of asset purchases being reduced in September.
The CAD/GBP exchange rate hit a low of 0.6169
According to industry expert Matthew Perrier; ‘If you look at the data of late, it’s been missing a little bit to the soft side, which would seem to indicate Canada should over the medium term be a little bit weaker. But we’ve been stuck in a range for a couple of weeks now, so we’re still waiting for that breakout.’
Two pieces of influential Canadian data could inspire fluctuations in the commodity-driven currency in the days ahead.
Firstly, a Canadian retail sales report is due out on Thursday. Economists have predicted that sales fell by 0.5 per cent in June month-on-month after advancing by 1.9 per cent in May.
Secondly, Canadian inflation figures are due for publication on Friday. The consumer price index is forecast to gain by 1.4 per cent in July year-on-year, up from June’s gain of 1.2 per cent.
UK data could also be responsible for movement in the CAD/GBP pairing.
If the UK’s second quarter GDP figure meets or exceeds estimates for growth of 0.6 per cent, the Canadian Dollar could continue to soften against the Pound.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9676 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7250 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6190 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0587 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1952 –
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6160 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0332 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3797 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8393 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9447 <
(Correct as of 14:20 GMT)
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