Ahead of the release of Canadian RBC manufacturing PMI the Canadian Dollar broke free of its recent run of declines against its US counterpart and managed to reverse earlier losses against the Pound.
The Canadian Dollar Exchange Rate was in the region of 0.6114 against the British Pound as of 16:25 GMT
After a bearish few days the commodity-driven asset was boosted as Syrian tensions increased crude oil futures by as much as 1.2 per cent.
Earlier today the market spiked as Russian tracking systems picked up on a missile launch, although the Israeli Defence Minister later dismissed the incident as a test.
President Barack Obama is currently in the process of seeking the authorization of Congress before ordering a strike against Syria.
As foreign exchange strategist Greg Anderson notes; ‘The situation in Syria is going to take a lot longer than people thought. Commodity currencies have become a lot more attractive.’
The CAD/GBP exchange rate hit a low of 0.6071
The ‘Loonie’ extended gains after the RBC gauge of manufacturing advanced modestly from 52.0 to 52.1.
During the European session the Canadian Dollar fell against its British peer as the Pound rallied in response to stronger than anticipated UK construction data, but recouped loses prior to tomorrow’s Bank of Canada rate decision.
According to industry expert Ryan Littlestone, the central bank is likely to continue with the ‘wait and see’ stance it’s adopted for the last few months.
However, Deputy BOC Governor John Murray has stated: ‘The improving underlying strength of the US economy should more than compensate for the drag from higher interest rates.’
Gains against the US Dollar were a little limited as a stronger-than-anticipated US ISM manufacturing index came in at 55.7, better than the 54 estimate.
US construction spending also topped forecasts, coming in at a gain of 0.6 per cent rather than the 0.4 per cent rise predicted.
Both pieces of data support the case for the Federal Reserve tapering stimulus in the weeks ahead.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9494 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7219 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6114 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0514 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2193 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6363 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0520 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3855 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8235 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9515 >
(Correct as of 15:25 GMT)
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