The Canadian Dollar eased from its best level since the 21st of May against the Pound on Friday after a report showed that the value of Canadian factory sales dropped unexpectedly in April.
According to the data the value of factory sales fell after being dragged down by a yearly decline in the nation’s petrol and coal industry as refinery’s were closed.
The number of aerospace and machinery receipts also fell.
According to Statistics Canada, sales fell by 0.1% to C$50.85 billion, marking the first decline in four months, following a revision upwards of 0.3%.
Economists were forecasting for sales to increase by 0.5% from the originally reported 0.4% gain in the previous month, according to a report from Royal Bank of Canada.
The Pound to Canadian Dollar is currently trading around 1.8416.
But sales volume, which economists use to estimate monthly output, rose 0.4%, suggesting that the value of sales were down because of price declines.
The statistical agency said total sales were up in two-thirds of industries representing about 60% of manufacturing.
Further losses for the ‘Loonie’ were restrained as oil prices remained higher as the situation in Iraq continued to escalate.
The Iraqi government was preparing to defend the capital city of Baghdad. The terrorist ISIS group captured several cities in the North and East.
Against the US Dollar the ‘Loonie’ also weakened after the US Dollar found support from the release of better than expected producer price inflation data.
Core producer price inflation, which excludes food, energy and trade, slipped 0.1% last month, compared to expectations for an increase of 0.1%, after a 0.5% rise in April.
Sterling continued to find support from yesterday’s comments made by Bank of England Governor Mark Carney. In a speech he hinted that the Central Bank could increase interest rates sooner than the markets initially expected.
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,0.5431 ,
Canadian Dollar,,US Dollar,0.9212 ,
Canadian Dollar,,Euro,0.6803 ,
Canadian Dollar,,Australian Dollar,0.9812,
Canadian Dollar,,New Zealand Dollar,1.0638 ,
US Dollar,,Canadian Dollar,1.0853 ,
Pound Sterling,,Canadian Dollar,1.8416 ,
Euro,,Canadian Dollar,1.4696 ,
Australian Dollar,,Canadian Dollar,1.0192 ,
New Zealand Dollar,,Canadian Dollar,0.9394 ,
[/table]
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