On Friday the Canadian Dollar was able to advance on its American peer as Canadian growth for the first quarter exceeded economists’ estimates. The currency later declined as the price of crude oil (a key Canadian commodity) dipped, but today positive news from the Eurozone has boosted higher-risk currencies like the ‘Loonie’.
The Canadian Dollar Exchange Rate was in the region of 0.9666 against the US Dollar as of 14:30 GMT
Earlier today a manufacturing report for the Eurozone compiled by Markit showed that manufacturing in the 17 nation currency bloc contracted by less than anticipated in May.
While the indexes for the Eurozone’s largest economies, Germany and France, moved closer to the 50 mark which separates growth from contraction, manufacturing in Sweden and Norway expanded by more than hoped.
As a consequence of the unexpected result investors set their sights on higher-yielding assets and the safe-haven US Dollar declined against several of its most traded peers – including the Canadian Dollar.
But some economists believe that the advance of riskier currencies won’t last.
Shaun Osborne, a Toronto-based currency strategist, observed: ‘It’s just a case of the US Dollar slipping back across the board. I’m not too sure that we’re going to see a clean risk-on, risk-off environment from here.’
Last Friday Statistics Canada released a report showing that domestic GDP expanded at a 2.5 per cent annualised pace in the three months from January – 0.2 per cent more than estimated and the nation’s most significant growth for six quarters.
The biggest piece of Canadian data due for release this week is Friday’s employment report. Industry experts are expecting the nation’s unemployment rate to have declined from 7.2 per cent to 7.1 per cent in May, with the economy adding 18,000 jobs.
US non-farm payrolls data (also scheduled for publication on Friday) is likely to cause widespread market volatility.
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9666 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7433 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6335 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0008 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2141 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5786 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0353 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3454 >
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: 0.9990 <
(Correct as of 14:30 GMT)
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