With the US debt ceiling deadline fast approaching, lawmakers in the world’s largest economy have been scrambling around in their attempt to forge a workable deal and avoid a potentially cataclysmic default.
The Canadian Dollar Exchange Rate was in the region of 0.6056 against the British Pound as of 14:45 GMT
Finally, after a prolonged period of uncertainty and subsequent market volatility, it seems that policy makers are finally thrashing out the details of compromise which would bring the federal shutdown (which has been a real threat to Canadian growth) to an end.
The prospect of an agreement being reached increased in likelihood during the North American session, and was supported by comments issued by former Treasury Secretary Lawrence Summers.
Summers stressed; ‘We will not default. I cannot say exactly how the political machinations will work out, but I am as certain as anything that any Dollar of interest will be paid, and paid on time’.
The CAD/GBP exchange rate hit a low of 0.6025
Although the ‘Loonie’ fluctuated on crude oil concerns, the commodity-driven asset was holding steady against the Pound and strengthened to a one week-high against the ‘Greenback’.
According to forex expert Don Mikolich; ‘Canada really depends on a robust US recovery. Once things are kind of sealed and back on track, then I think Canada could trade a little bit stronger.’
The Canadian Dollar was also supported by a report showing that existing home sales increased last month.
Sales of Canadian homes increased 0.8 per cent in September, month-on-month, while actual non-seasonally adjusted sales for September surged by a whopping 18.2 per cent year-on-year.
The Canadian Real Estate Association’s home price index was up 3.1 per cent from September of 2012.
Calgary led the gain in sales, with purchases increasing by 20.5 per cent in the region.
According to Calgary-based realtor Grace Yan; ‘Currently it is still a strong seller’s market […] We are expecting the rest of the year to remain a strong, healthy resale market’.
CREA’s chief economist also commented; ‘Year-over-year increases in the sales over the past couple of months highlights how activity softened across much of the country following the introduction of tighter mortgage rules last summer. While the momentum for sales activity began improving a few months ago, it may be losing steam after having only just climbed back in line with an average of the past 10 years. Even so, one can see large year-on-year changes when comparing activity to a month like September 2012, when sales dropped to the lowest level for that month in more than a decade.’
While today’s report didn’t exert a considerable influence over the Canadian Dollar, this week’s domestic inflation data (due for publication on Friday) is likely to have a more significant impact.
Tomorrow’s UK employment data will also move the CAD/GBP pairing.
Current Canadian Dollar (CAD) Exchange Rates:
< Down > Up
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9653 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7154 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6056 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0130 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1544 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6512 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0361 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3978 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8663 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9870 >
(Correct as of 14:45 GMT)
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