After falling to within touching distance of a six-week low against its American counterpart yesterday as US durable goods orders declined, the Canadian Dollar was able to achieve a week high of 97.81 cents against the ‘Greenback’ on positive UK news.
The Canadian Dollar Exchange Rate was in the region of 0.9791 against the US Dollar as of 14:00 GMT
After data revealed that the UK not only avoided entering a triple-dip recession in the first quarter of this year but actually posted 0.2 per cent better growth than forecast, investor’s interest in higher-risk assets strengthened, boosting the ‘Loonie’.
Following the UK announcement one Canadian strategist noted: ‘Following that report there’s definitely a further move to modest strengthening in the Dollar. That economy has had difficulty in registering any economic growth in the past several quarters, so I suppose any modest good news may help to shape the risk sentiment on the day.’
However, the Canadian Dollar fell against several of its other commonly traded counterparts as futures on crude oil pared gains.
The ‘Loonie’ could continue to advance on the US Dollar in the hours ahead as US initial jobless claims fell by more than forecast, slightly improving the US economic outlook – and brightening Canada’s by extension.
Although economists expected jobless claims for the week ending April 20th to be in the region of 350,000 they actually decreased by 16,000 to 339,000.
While the previous weeks figure was upwardly revised from 352,000 to 355,000, the four-week moving average also fell, from 362,000 to 357,500.
The report also showed that the number of people continuing to receive jobless benefits dropped to the lowest figure recorded for nearly four years.
Prior to the reports publication economist Guy Berger asserted: ‘There’s been an improvement in the layoff situation. The problem is that it doesn’t seem like the hiring part of the equation has gone anywhere. The labour market is pretty much the same way it’s been the last two years, which is improving fast enough to gradually reduce the unemployment rate but not nearly as fast as everyone would like.’
Meanwhile, separate data revealed that average weekly earnings in Canada were up 3.1 per cent on the same period of 2012. On the month, earnings were up by 0.9 per cent.
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9791 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7481 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6328 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9481<
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1531 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5803 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0221 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3364 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8688 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0546 >
(Correct as if 14:00 GMT)
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