With no domestic news to counter the impact of shifting sentiment, the ‘Loonie’ declined against peers including the US Dollar and Pound as the North American session began.
The Canadian Dollar Exchange Rate was in the region of 0.6102 against the British Pound as of 14:30 GMT
Ahead of the publication of US retail sales the US Dollar broadly strengthened, leaving the ‘Loonie’ struggling against its rival.
Meanwhile, a better-than-expected construction report for the UK pushed the Pound higher and saw the CAD/GBP pairing trading slightly lower.
As chief economist David Watt noted; ‘There seems to be a risk-off tone today and the Canadian Dollar is caught up in that. It certainly seems like markets in general are tied up in knots right now over what the Federal Reserve is going to say next week.’
However, the Canadian Dollar pared losses against the ‘Greenback’ after US retail sales were shown to have increased by less than forecast in August.
After climbing by 0.4 per cent in July economists expected sales to advance by 0.5 per cent last month, but they actually only climbed 0.2 per cent.
The CAD/GBP exchange rate hit a low of 0.6092
In response to the data senior economist Eugenio Aleman stated; ‘The consumer continues to tag along slowly but surely. We have to see better job growth, better income growth.’
Meanwhile the US price index gained by more than expected, rising 0.3 per cent month-on-month and 1.4 per cent year-on-year rather than advancing the 0.2 per cent and 1.3 per cent expected.
However, while the CAD/USD pairing experienced movement following these results, it was slightly muted ahead of the University of Michigan confidence index for September. Industry experts are forecasting that the index dipped from 82.1 in August to 82.0 in September.
Next week Canadian data to be aware of includes existing home sales, manufacturing shipments and inflation figures.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9676 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7272 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6102 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0450 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1906 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6388 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0333 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3701 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8407 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9569 >
(Correct as of 14:30 GMT)
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