A variety of factors helped the Canadian Dollar strengthen during local trade.
Firstly, risk appetite was bolstered as Greece was granted approval for the next instalment of its bailout.
The Canadian Dollar Exchange Rate was in the region of 0.6383 against the British Pound as of 14:15 GMT
Secondly, crude oil (a major Canadian export) hit an almost 14 month high prior to the publication of data expected to show that US crude oil supplies dropped for a second week. Gold also hit a two-week high, to the benefit of commodity driven currencies.
Thirdly, Canadian housing starts for June exceeded estimates, climbing 199,600 instead of the 187,500 estimated. Although the result was lower than May’s revised figure of 204,616 the decline was less than expected.
The ‘Loonie’ was also able to advance on the Pound after the British currency weakened against the majority of its most traded peers following the release of disappointing manufacturing and industrial production data for the UK.
The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate hit a high of 0.6407
In response to the Canadian Dollar’s movement currency strategist Camilla Sutton noted: ‘There is a vague appetite for risk as we’re seeing equities slightly higher, volatility is slightly lower.’
The CAD/GBP pairing may experience additional movement following the release of the NIESR GDP estimate for June at 15:00 GMT.
CAD/USD volatility is likely to occur tomorrow following Federal Reserve Chairman Ben Bernanke’s speech and the publication of minutes from the latest Federal Open Market Committee meeting.
Industry experts will also be looking ahead to Canada’s new housing price index, due 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: 0.9491 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7382 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6383 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0335 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2072 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5669 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0557 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3546 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8250 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9675 >
(Correct as of 14:15 GMT)
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