While the ongoing political impasse in the US kept pressure on the Canadian Dollar and restrained the CAD/USD pairing, uninspiring UK news helped the ‘Loonie’ advance on Sterling.
The Canadian Dollar Exchange Rate was in the region of 0.6046 against the British Pound as of 15:20 GMT
The ‘Loonie’ modestly extended earlier gains against Sterling after the UK NIESR GDP estimate for September showed growth of 0.8 per cent, slightly down from the 0.9 per cent expansion recorded the previous month.
Before the UK growth data was published the Canadian Dollar was trading against the Pound in the region of 0.6035 pence per Dollar having strengthened in response to less-than-impressive UK manufacturing/industrial production and trade balance data.
However, while the ‘Loonie’ was stronger against the Pound, it was weaker against the US Dollar as the US governmental shutdown entered another day with no sign of resolution on the horizon.
The commodity-driven Canadian currency hit a four-week low against its US counterpart after the ‘Greenback’ gained support from speculation that Janet Yellen will head up the Federal Reserve after Ben Bernanke steps down. Falling crude oil also adversely affected the asset.
As currency strategist Shaun Osborne observed; ‘We’ve seen some signals the US slowdown may spill over to Canada, and we’ve had some weak trade numbers. The Canadian Dollar has really been sidelined and moving sideways for the past couple of weeks and I don’t think that’s going to change in the near term.’
The CAD/GBP exchange rate hit a low of 0.5973
Another factor weighing on the Canadian Dollar is the expectation that Friday’s employment report will show that job creation slowed in September.
Industry experts have projected that the Canadian economy added 15,000 positions in September following an increase of 59,200 the previous month. The unemployment rate is expected to hold at 7.1 per cent. A surprising result is likely to trigger ‘Loonie’ volatility.
Before today’s North American session closes, the CAD/USD pairing could experience fluctuations following the publication of minutes from the latest Federal Reserve policy meeting.
Tomorrow’s Bank of England rate decision and Canadian new housing price index will also be of interest.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9641 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7132 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6046 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0194 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1614 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6534 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0371 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4023 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8603 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9813 >
(Correct as of 15:20 GMT)
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