Yesterday the Canadian Dollar was knocked by disappointing manufacturing shipments data and investors’ concern regarding the ongoing US debt discussions.
However, after US lawmakers managed to allay default fears by coming to an agreement just in time, the commodity driven ‘Loonie’ rallied.
The Canadian Dollar Exchange Rate was in the region of 0.6020 against the British Pound as of 14:40 GMT
While the accord eventually reached may be temporary in nature – delaying rather than fixing the major fiscal issues – investors still heaved a sigh of relief as it was made.
Just after midnight President Barack Obama signed the bill and brought an end to the 16 day federal shutdown.
As Canada relies heavily on the US for trade, news that the latter nation will be returning to full functionality is supportive for Canadian growth prospects. That being said, the shutdown may well have serious repercussions for the US economy and the likelihood of the Federal Reserve tapering stimulus before the end of the year has all but vanished.
The ‘Loonie’ was also supported by hints offered by Prime Minister Stephen Harper regarding Canada’s trade pact negotiations with the European Union. According to leaked information, Harper asserted; ‘despite our accomplishments, we will not rest here. We must go further and we must go faster’.
The CAD/GBP exchange rate hit a low of 0.6003
This official statement was later released from Harper’s office; ‘Debt is low and deficits are falling. Businesses are creating opportunities. More Canadians are working now than ever before […] We lead the G-7 in job creation. We lead the G-7 on the strength of our balance sheet. We lead the G-7 in political stability. But, for Canada to prosper through the challenges of this uncertain world, we must do more. We must keep our eye on the long term.’
However, in spite of these rousing sentiments, the Canadian Dollar declined against the Pound during the European session as better-than-forecast UK retail sales data supported Sterling against its peers.
With Canadian inflation data due for publication tomorrow, further ‘Loonie’ fluctuations are likely to occur before the weekend, while additional announcements from the US relating to the budget deal or QE tapering may trigger CAD/USD movement.
Current Canadian Dollar (CAD) Exchange Rates:
< Down > Up
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9702 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7110 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6020 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0093 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1469 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6607 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0307 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4050 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8695 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9910 >
(Correct as of 14:40 GMT)
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