The expectation and publication of several pieces of influential US data have inspired ‘Loonie’ fluctuations during local trade.
The Canadian Dollar Exchange Rate was in the region of 0.9516 against the US Dollar as of 15:25 GMT
Prior to the publication of the US reports the Canadian Dollar edged away from its two-year low against the US Dollar, briefly touching C$1.0468 and USD$ 95.53.
In response to the ‘Loonie’s earlier movement currency strategist Jeremy Stretch commented: ‘I think we need to take the reversal in the Canadian Dollar in context because it’s still substantially smaller than we’ve seen in some of the other dollar-bloc commodity currencies, but nevertheless it is a pause for breath. The growth story still looks somewhat better cyclically in the US than Canada and I think the data will disappoint and slow over the next few months.’
However, the Canadian Dollar quickly reversed gains after US durable goods orders advanced by more than anticipated in May.
The gains were broadly spread, indicating that the manufacturing sector of the world’s largest economy is stabilising.
Although economists predicted that bookings for durable goods would advance by 3 per cent they actually climbed by 3.6 per cent. April’s figure was revised to 3.6 per cent.
While export weakness persisted, improvements in home building and vehicle demand ensured a good result.
In response to the result one industry expert noted: ‘This is the missing piece for an upswing in economic activity. Business capital investment activity is off to a strong showing. If businesses start investing they’ll add to their workforce.’
The ‘Loonie’ weakened to 0.9503 against the US Dollar
This positive US news was then followed by some more. Not only did new home sales advance by 2.1 per cent rather than the 1.3 per cent expected, consumer confidence in the US jumped from 76.2 to 81.4 in June.
Economists expected consumer confidence to dip to 75.1 this month.
This afternoon’s positive results allowed the US Dollar to broadly strengthen.
As forex strategist Vassili Serebriakov: ‘The stronger US numbers are boosting the Dollar. With the Fed’s tapering signal being strongly data-dependent, markets will continue to be particularly sensitive to high frequency US data.’
The ‘Loonie’ weakened further as the session progressed, hitting lows of US$ 0.9503 and C$1.0523.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9516 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7265 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6165 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0274 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2260 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6204 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0512 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3748 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8158 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9734 >
(Correct as of 15:25 GMT)
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