The Pound was trading higher against the Canadian Dollar on Tuesday as the ‘Loonie’ was under pressure as investors look ahead to Wednesday’s Canadian Central Bank meeting.
The ‘Loonie’ came under some pressure in the afternoon as the US Dollar strengthened following the release of better than expected US chain store sales and New York’s ISM manufacturing PMI data.
“With the data calendar dry in Canada and boasting only second-tier indicators in the US., price action will be dictated by flows, yields, and equities, as traders await for tomorrow’s Bank of Canada meeting,” said Shaun Osborne, chief currency strategist at TD Securities.
Economists are widely expecting that the Canadian Central Bank will choose to hold fire on its policy rate at leave it unchanged at 1.00%, but they will closely watch the Central Bank’s policy statement for clues on any constant downside risks to inflation or the Canadian economy.
The Pound meanwhile continues to find support from a run of positive economic data releases but further gains were restrained after data today showed a slight slowdown in activity in the UK’s construction sector.
GBP to CAD exchange rate is trading around 1.8294.
The Canadian Dollar was also weaker against the Euro after the single currency found support from data which showed that unemployment in the 18-member Eurozone region edged lower in May from the previous month. Investors widely chose to ignore a separate report which showed that inflation in the region fell to just 0.5%.
The US Dollar made further gains against the ‘Loonie’ after data showed that factory orders increased more than forecast on a month by month basis.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5470 ,
Canadian Dollar,,US Dollar,0.9161 ,
Canadian Dollar,,Euro,0.6719 ,
Canadian Dollar,,Australian Dollar,0.9902,
Canadian Dollar,,New Zealand Dollar,1.0879 ,
US Dollar,,Canadian Dollar,1.0916 ,
Pound Sterling,,Canadian Dollar,1.8294 ,
Euro,,Canadian Dollar,1.4883 ,
Australian Dollar,,Canadian Dollar,1.0095 ,
New Zealand Dollar,,Canadian Dollar,0.9233 ,
[/table]
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