Yesterday the Pound fluctuated as a result of a surprising slowdown in UK inflation and the Canadian Dollar (which was supported by a strong domestic manufacturing shipments report) was able to post a modest gain on its British rival.
The Canadian Dollar Exchange Rate was in the region of 0.5738 against the British Pound as of 14:35 GMT
However, the ‘Loonie’ continued to languish in the region of a three-year low against its US rival as the Federal Open Market Committee policy announcement loomed and went on to shed gains against the Pound as upbeat UK employment data pushed Sterling higher.
With UK unemployment falling to its lowest level since 2009 the Pound posted widespread advances, rallying notably against the Euro and US Dollar and hitting a high of 1.7439 against the Canadian Dollar.
In response to the news foreign-exchange strategist Steven Saywell commented; ‘The UK is going to be the fastest growing G-10 economy next year. As a result of that we think Sterling will probably be the best-performing currency’.
The CAD/GBP exchange rate hit a low of 0.5734
The Canadian Dollar extended declines against the Pound as Stephen Poloz, Governor of the Bank of Canada, asserted that the ‘Loonie’s recent weakness will do little to help the nation’s exporters.
During an interview in Ottawa Poloz stated; ‘A couple of cents here and there isn’t what causes an exporter really to change their behaviour.’
Poloz also added; ‘It’s not just the Canadian Dollar that’s been moving in the last few months. We have had a bit of an unwinding of that stress that we went through and that is a positive thing. It’s one of the signs that the world is healing.’
While a Canadian report later showed a surprisingly strong increase in wholesale sales, the commodity-driven currency remained under pressure ahead of the FOMC decision.
Wholesale sales increased by 1.4 per cent in October, month-on-month, rather than advancing 0.3 per cent as expected.
Before the Fed asserted whether or not it would be tapering the current level of asset purchases this month, macro-strategist David Tulk issued the following remark; ‘If the minority view that the Fed does taper at this meeting is realised, you’d see a very strong US Dollar positive response, so unfortunately that would weigh quite clearly on the Canadian Dollar. The bulk of the community and the market is still positioned for a January taper.’
But whatever the Fed decides, with Canadian inflation data due for release on Friday, further ‘Loonie’ fluctuations are likely to take place before the end of the week.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9396 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.6838 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5738 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0553 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1421 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.7426 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0643 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4622 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8757 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9474 >
(Correct as of 14:35 GMT)
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