Last week concerns regarding the pace of economic recovery Canada, coupled with better-than-forecast US news, saw the ‘Loonie’ plummet to an almost two-year low against its US counterpart.
The Canadian Dollar Exchange Rate was in the region of 0.6355 against the British Pound as of 15:55 GMT
The commodity-driven currency was able to gain on the Pound however after the British currency broadly softened in response to the Bank of England’s policy statement.
As local trade began today the Canadian Dollar extended gains against the Pound and climbed on the US Dollar as economists forecast that tomorrow’s Canadian housing starts data will show that the pace of home construction stayed above average last month.
It is expected that the report will show that housing starts rose by 188,000 in June following a 200,178 gain in May.
Speculation surrounding the data prompted one Toronto based industry expert to assert: ‘That would be a pretty good number. A shovel in the ground for tomorrow is probably the most important number.’
Meanwhile, today’s Canadian building permit report showed an unexpected gain of 4.5 per cent in May, which trumped economist’s expectations for a 5.2 per cent decline. April’s figure was upwardly revised to 11.2 per cent.
The Canadian Dollar climbed to a high of 0.6385 pence per Dollar
However, Canadian outlook future sales for the second quarter showed that home-grown businesses remain cautious when it comes to the economic outlook for the year ahead. The gauge declined to 9 from 24, rather than rising to 30 as expected.
According to the Bank of Canada: ‘expectations regarding the economic outlook remain muted. Firms continue to express concerns about the prospects for domestic demand. While many firms note that gradually improving US demand bodes well for the sales outlook, they generally expect US growth to be slow over the next 12 months and competitive conditions in the US market to remain intense.’
The ‘Loonie’ fluctuated against the Pound on expectations that this week’s UK data will show that the nation’s economic recovery is gathering momentum.
The CAD/GBP exchange rate could experience additional fluctuations following the publication of a UK industrial production report tomorrow morning and the nation’s NIESR GDP estimate.
Housing starts figures are scheduled for release tomorrow at 13:15 GMT
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9477 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7371 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6351 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0395 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2209 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5743 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0549 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3567 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8157 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9616 >
(Correct as of 15:55 GMT)
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