The Canadian Dollar fell further against the Pound on Friday falling to a new multi-year low and slumped to its lowest level in more than four months against the US Dollar.
The currency’s decline came after consumer price index data came in below the Bank of Canada’s target rate which increased speculation that the Central Bank will refrain from adjusting interest rates and caused investors to increase their bets that it may now consider implementing monetary easing measures.
The ‘Loonie’ tumbled on Thursday after Bank of Canada governor Stephen Poloz said that low interest rates will be maintained until the national economy shows more signs that it is making a solid recovery. Friday’s data confirmed his comments.
According to Statistics Canada the nations CPI data came in at 0.7% year on year in October below the 1.1% recorded in September. Economists had been calling for a figure of 1.12%.
Better than expected retail sales data failed to support the ‘Loonie’. According to data released by Statistics Canada retail sales rose more than three times faster than what economists had been expecting. Month on month, retail sales jumped by 1% to a new record high level of C$40.7 billion in September. An increase in the sale of new cars was thought to be the main factor behind the unexpected increase. Sales also went up as Canadian consumers bought goods to prepare for winter with clothes and other essentials rising.
The next major piece of data for Canada is due next Thursday, until then the currency will be mostly influenced by events in the USA.
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9478
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7013
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5850
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.7091
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0550
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4258
(Correct as of 14:30 pm GMT)
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