Canada might have a new little sovereign to celebrate, but there was other positive news for the nation today.
After gaining yesterday in response to disappointing US housing data and rising crude oil prices, the ‘Loonie’ extended gains as Canadian retail sales were shown to have expanded by significantly more than forecast.
The Canadian Dollar Exchange Rate was in the region of 0.6319 against the British Pound as of 14:30 GMT
Prior to the retail sales report the commodity-driven currency fluctuated against its US peer and a broadly strengthening Pound.
The Canadian Dollar slipped against its US rival as crude oil declined.
In response to the currency’s movement strategist Shaun Osborne observed: ‘We’re starting to see some signs of softness in crude oil. That could be a strike against the Canadian Dollar, but it’s really at the moment all positioning and the intraday flows that we see.’
Meanwhile, the Pound was bolstered overnight by an increase in sentiment inspired by the Royal birth and the expectation of this week’s UK GDP data showing positive expansion.
The CAD/GBP exchange rate hit a high of 0.6338
However, with Canadian retail sales far exceeding the 0.4 per cent gain forecast by economists the ‘Loonie’ rallied, advancing on the majority of its most traded currency rivals.
According to the latest figures compiled by Statistics Canada, retail sales surged by 1.9 per cent in May, the fastest pace for three years. Almost all of the eleven categories which make up the gauge posted an advance.
This latest piece of positive news follows other indications that consumer spending remains resilient, such as better-than-forecast home construction data.
Year-on-year sales were up by an impressive 3.6 per cent.
The unexpectedly strong result boosted the Canadian Dollar and the currency’s advance on the US Dollar was further boosted by the news that US existing home sales declined by 1.2 per cent in June, rather than gaining by 1.5 per cent as predicted.
The only other piece of Canadian data scheduled for release this week, the nation’s average weekly earnings report, is unlikely to trigger much movement, but the CAD/GBP pairing is expected to fluctuate in response to Thursday’s UK GDP data while the CAD/USD pairing will be affected by US durable goods orders (also set for release on Thursday).
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9698 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7354 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6319 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0495 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2188 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5811 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0306 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3589 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8222 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9523 <
(Correct as of 14:30 GMT)
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