With three Federal Reserve Bank Presidents due to speak today, and perhaps shed some light on a potential timeline for the tapering of quantitative easing, the debate surrounding the influential issue led to the Canadian Dollar slipping against its British counterpart.
The Canadian Dollar Exchange Rate was in the region of 0.6049 against the British Pound as of 14:30 GMT
Declines against the Pound were exacerbated as the British asset was boosted by the expectation that this week’s growth report will show that the UK’s economic recovery continued in the second quarter.
The commodity-driven asset also edged away from a three-month high against the US Dollar ahead of the release of Canadian retail sales figures.
However, economists are expecting the report to show that sales increased by 0.5 per cent, month-on-month, after declining by 0.6 per cent in June.
Month-on-month retail sales excluding autos are expected to rise 0.6 per cent in July after a 0.8 per cent decline the previous month.
If the results meet or exceed these expectations the ‘Loonie’ could recoup losses.
According to industry expert Don Mikolich, ‘I don’t know if Canada is due to overly strengthen in a period where we’re still in recovery mode. We’re probably looking for Canada to make a little bit more gains from here, and then lose a little bit of steam.’
The CAD/GBP exchange rate hit a low of 0.6032
After preliminary US Markit PMI came in at 52.8 in September, down from 53.1 in August and below the 54.0 level predicted by economists, the Canadian Dollar was able to edge up a little on the ‘Greenback’, but with New York Fed President William C. Dudley, Dallas Fed President Richard Fisher and Atlanta Fed President Dennis Lockhart all due to deliver speeches from 14:20 GMT, additional movement in the CAD/USD pairing is likely.
Meanwhile, UK GDP data, due for release on Thursday, could inspire fluctuations in the CAD/GBP pairing.
Canadian data to be aware of this week includes Friday’s average weekly earnings report.
As has been the case for the last few weeks, US news (and in particular any guidance as to when stimulus may be reduced) will continue to dictate market movement.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9720 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7187 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6049 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0296 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1622 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6530 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0291 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3908 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8624 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9709 >
(Correct as of 14:30 GMT)
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