Although the Pound continues to receive support from last week’s surprisingly strong UK data and improved sentiment regarding the nation’s economic recovery, Sterling has slipped against its Canadian counterpart as the commodity-driven asset was boosted by US developments.
The Canadian Dollar Exchange Rate was in the region of 0.6089 against the British Pound as of 14:45 GMT
News that the hawkish candidate for the unenviable position of Chairman of the Federal Reserve has dropped out of the race hit the US Dollar hard over the weekend, as the likelihood of the central bank ending its accommodative easing policy early dimmed.
After Lawrence Summers, former US Treasury Secretary, withdrew from consideration the Canadian Dollar advanced on its US peer despite the price of crude oil (Canada’s main export) falling 1.4 per cent a barrel.
As currency strategist Greg T. Moore stated; ‘Commodity currencies, including the CAD, are outperforming even other Group of 10 currencies. There’s a general sense that the Fed can be more dovish than originally thought, which is benefiting higher-yielding currencies.’
The CAD/GBP exchange rate hit a high of 0.6130
The ‘Loonie’s advance on the Pound was modest ahead of the release of UK inflation data, but was supported by the news that sales of existing Canadian homes climbed by 2.8 per cent in August from July. Year-on-year sales were up 11.1 per cent.
Prior to the publication of US industrial/manufacturing production figures the Canadian Dollar rose to a month high against the ‘Greenback’.
However, after US industrial production was shown to have risen by the most for six months in August the CAD/USD pairing experienced mild fluctuations. Although the 0.4 per cent advance was smaller than the 0.5 per cent gain predicted it was still an improvement on the stagnation recorded the previous month.
Meanwhile, US manufacturing production surged by 0.7 per cent, beating expectations for a 0.5 per cent climb.
Tomorrow CAD/GBP movement could be triggered by UK inflation data and a Canadian manufacturing shipment report.
CAD/USD fluctuations, on the other hand, are most likely to occur in response to US inflation figures ahead of Wednesday’s influential Federal Open Market Committee meeting.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9713 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7260 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6089 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0359 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1861 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6418 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0295 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3773 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8455 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9656 >
(Correct as of 14:45 GMT)
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