Canadian Dollar to US Dollar (CAD/USD) Exchange Rate Struggles on Mixed Oil Forecasts
On Thursday rallying copper and oil prices saw the Canadian Dollar to US Dollar (CAD/USD) exchange rate advance.
However, as high-profile industry experts projected mixed forecasts for the future of oil prices, the Canadian Dollar lost ground.
Although some anticipate a slowing in oil price declines, others envisage further weakness ahead. According to the OCBC bank; ‘The potential Dollar strength into 2015 may be another factor in play in pressuring oil prices. The weakness in the crude space is likely to keep sentiment jittery.’
Before the close of trading, the US Consumer Price Index and University of Michigan Confidence gauge could be responsible for CAD/USD volatility.
A soft CPI figure for the US could boost the ‘Loonie’.
The Canadian Dollar to US Dollar (CAD/USD) exchange rate is currently trading in the region of 0.8344, down around 0.2% on the day’s opening levels.
Earlier…
CAD/USD Exchange Rate Trims Gain to 0.2%
The Canadian Dollar to US Dollar (CAD/USD) exchange rate fell from a high of 0.8471 following the publication of Canadian existing home sales data.
The ‘Loonie’ had previously surged by around 1% against its US counterpart in response to an increase in oil prices and Federal Reserve rate hike concerns.
However, this advance fell back to 0.2% after Canadian existing home sales were shown to have dropped by -5.8% on the month in December following stagnation in November.
CAD/USD declines were limited as the US initial jobless and continuing claims figures disappointed expectations.
The Canadian Dollar to US Dollar (CAD/USD) exchange rate is currently trading in the region of 0.8388
Earlier…
CAD/USD Exchange Rate Trends Higher
Ahead of the release of the US initial jobless/continuing claims figures, the Canadian Dollar to US Dollar (CAD/USD) exchange rate was trading in the region of 0.8458, up 1.0% on the day’s opening levels.
Demand for the US Dollar was down following the Swiss National Bank’s (SNB) decision to remove the cap on the Euro/Swiss Franc exchange rate.
The North American asset was also feeling the pressure following yesterday’s disappointing US retail sales numbers.
Earlier…
CAD/USD Exchange Rate Still Trending Lower
Oil price pressures kept the Canadian Dollar to US Dollar (CAD/USD) exchange rate trending in weaker position even as the US Advance Retail Sales report delivered a negative surprise.
Retail sales in the US were shown to have fallen by -0.9% on the month in December, and not the -0.1% economists expected.
The report saw the US Dollar decline against peers like the Pound and Euro.
As stated by economist Joshua Shapiro; ‘Weakness in core retail spending is at risk of confirming the wage deterioration is more severe than perhaps thought. We had very strong job growth last year, but wage growth left something to be desired.’
After the report was published the Canadian Dollar to US Dollar (CAD/USD) exchange rate was trending in the region of 0.8373
Although the majority of industry experts expect the current weakness in commodity currencies to persist, the ‘Loonie’s losses might be tempered if US ecostats start impressing again.
A market analyst with CMC Markets asserted; ‘The Canadian Dollar’s losses are likely to be mitigated by the country’s proximity to a recovering US economy.’
The US Dollar to Canadian Dollar (USD/CAD) exchange rate was trading in the region of 1.1937
Earlier…
The falling price of crude oil has kept the ‘Loonie’ under pressure for months, and the Canadian Dollar to US Dollar (CAD/USD) exchange rate weakened beyond 1.20 Canadian Dollars during the North American session.
The Canadian Dollar to Pound Sterling (CAD/CAD) exchange rate also fell, shedding 0.25% despite a slide in UK inflation pushing back Bank of England (BoE) interest rate hike projections.
CAD/USD Exchange Rate Today: ‘Loonie’ Hits 2009 Low
Fears that the downtrend in crude oil prices could have a damaging impact on Canada’s economic performance saw the ‘Loonie’ weaken beyond 1.20 Canadian Dollars for the first time since early 2009.
The Canadian Dollar to US Dollar (CAD/USD) exchange rate brushed a low of 0.8318
The Canadian Dollar has now lost 3% against its US counterpart since the start of the year.
In reference to the CAD/USD currency pair, economist Douglas Porter noted; ‘It’s down roughly 10% from a year ago. That’s a very deep decline in a relatively short period of time. We’ve seen deeper drops, but historically that would rank right up there with one of the biggest declines in a 12-month period. The losers, pretty clear cut: it’s consumers. Basically, we have to pay more for anything that’s imported or priced in US Dollars.’
The US Dollar to Canadian Dollar (USD/CAD) exchange rate achieved a high of 1.2018
Although influential economic reports for Canada have been lacking this week, demand for the commodity-driven asset has been undermined by the World Bank negatively revising its global growth projections for both 2015 and 2016.
In June of 2014 the World Bank predicted annual expansion of 3.4% in 2015 and 3.5% in 2016. It’s now envisaging growth of just 3.0% and 3.3%.
The World Bank also intimated that the global economy is reliant on the strength of the US and that the current situation cannot continue.
However, the institution did have some positive points to make regarding the recent fall in oil prices.
The World Bank asserted; ‘The lower oil price, which is expected to persist through 2015, is lowering inflation worldwide and is likely to delay interest rate hikes in rich countries. This creates a window of opportunity for oil-importing countries, such as China and India; we expect India’s growth to rise to 7% by 2016.’
Canadian Dollar to US Dollar (CAD/USD) Exchange Rate Forecast
Later today the Canadian Dollar could recoup losses against the US Dollar if the Advance Retail Sales report for the world’s largest economy prints at or below forecast levels.
It has been estimated that US retail sales fell by -0.1% in December, month-on-month, following an increase of 0.7% in November.
If retail sales should have fallen by more than this it is likely that the US Dollar will decline.
However, a surprise to the upside would be US Dollar supportive.
Investors will also be focusing on the publication of the Federal Reserve’s Beige Book.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trading in the region of 1.8161
The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate is trading in the region of 0.5501
The US Dollar to Canadian Dollar (USD/CAD) exchange rate was trading in the region of 1.1974
The Canadian Dollar to US Dollar (CAD/USD) exchange rate is trading in the region of 0.8349
