The CAD to GBP exchange rate fell, but the CAD to USD exchange rate surged to its best level in 7-weeks in a busy session.
Sterling advanced against the ‘Loonie’ and the majority of its most traded peers following the release of better than expected industrial and manufacturing production data. The strong figures increased speculation among investors that the Bank of England could raise interest rates sooner than expected.
The CAD to GBP exchange rate was also weakened after official domestic data showed that the number of building permits issued in February fell by 11.6%. The fall was a sharp contrast to economist forecasts for a 3% decline.
A separate report showed that the annualised rate of Canadian housing starts dropped to 156,823 in March. Down from the 190,639 seen in February.Economists had been expecting a rise to 191,000.
The CAD to USD exchange rate climbed to its best level in 7-weeks as the ‘Loonie’ benefitted from the increased demand for emerging and commodity based currencies.
The US Dollar took a beating as it continued to be weighed down by last week’s disappointing jobs data. Investors are jittery ahead of Wednesday’s publication of the Federal Reserve’s policy meeting minutes for March.
“There certainly has been more interest again in emerging markets, suggesting that many investors are again looking out for yield, and that’s clearly a risk-on scenario that is US Dollar-negative. We can also blame the payrolls a little bit. It wasn’t as strong as some people had been anticipating,” said a senior foreign exchange strategist at Rabobank International.
All eyes will be looking to see the direction that the Fed’s monetary policy will take, in particular they will be keen to see if the Central Bank will adjust the rate in which it tapers its quantitative easing programme.
The currency was also weighed upon by the International Monetary Fund revising down its global growth forecast.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5465 ,
Canadian Dollar,,US Dollar,0.9152 ,
Canadian Dollar,,Euro,0.6632 ,
Canadian Dollar,,Australian Dollar,0.9793 ,
Canadian Dollar,,New Zealand Dollar,1.0600 ,
US Dollar,,Canadian Dollar,1.6456 ,
Pound Sterling,,Canadian Dollar,1.8304 ,
Euro,,Canadian Dollar,1.5087 ,
Australian Dollar,,Canadian Dollar,1.0211 ,
[/table]
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