With oil (a key Canadian export) climbing and the odds of the US Federal Reserve tapering stimulus falling, the ‘Loonie’ was able to advance to an almost month high against its US counterpart. However, with the Pound boosted by positive news from the UK the CAD/GBP pairing faltered.
The Canadian Dollar Exchange Rate was in the region of 0.6306 against the British Pound as of 14:20 GMT
The Pound advanced on the majority of its most traded peers after UK PM David Cameron insinuated that tax cuts could be on the horizon.
During a televised interview David Cameron commented: ‘As we start to see the economy grow stronger – and it is growing stronger – as we start to see the country improve, actually I want to give people back some of their hard-earned money and try to reduce their taxes.’
Economists are forecasting that this week’s GDP data for the UK will show that the British economy expanded by 0.6 per cent in the second quarter of this year following growth of 0.3 per cent in the first quarter.
A better-than-expected result could see the Pound extend gains against the Canadian Dollar.
The CAD/GBP exchange rate hit a low of 0.6288
The US Dollar lost ground against the majority of its most traded peers as a US industry expert asserted that the Fed won’t begin to tighten fiscal policy until 2016.
Similarly, investment officer Christopher Sullivan stated: ‘The chairman went out of his way to discourage investors from assuming Fed tapering has been largely decided, which has calmed bond buyers down. The path of easing will clearly be data-dependent, and every report will be intensely scrutinised as people are looking for any indication of whether we are on a path of policy adjustment or not.’
Meanwhile, the ‘Loonie’ softened against several of its commodity-driven rivals, including the Australian Dollar and South African Rand.
The ‘Aussie’ benefited from the news that China is loosening lending standards in order to support economic growth.
As currency strategist Adam Cole observed: ‘On days when the Dollar is soft generally Canada will tend to go up against the Dollar and down against other currencies, and that’s what we’re seeing. The general theme running through markets is the Dollar has pulled off the highs somewhat as US tapering and tightening expectations have perhaps gotten a little bit stretched.’
Additional movement in the CAD/GBP pairing could be triggered this week by Canadian retail sales figures, due out tomorrow. Month-on-month national retail sales are expected to have advanced by 0.4 per cent in April following a gain of 0.1 per cent in May.
A Canadian average weekly earnings report, scheduled for release on Thursday, is the only other piece of domestic data to watch out for this week.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9667 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7345 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6306 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0481 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2102 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5855 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0340 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3617 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8268 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9543 >
(Correct as of 14:20 GMT)
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