With the odds of the Federal Reserve opting to taper stimulus in December rising with every piece of positive US data, the appeal of higher-risk assets like the Canadian Dollar lessened and the currency weakened against its main rivals.
The Canadian Dollar Exchange Rate was in the region of 0.5726 against the British Pound as of 14:35 GMT
Last week the Canadian Dollar recovered ground as a result of better-than-expected domestic employment data, but gains were minimal and short-lived as the currency slipped over the weekend and edged lower during North American trading.
Friday’s impressive US non-farm payrolls report increased the likelihood of the Federal Reserve tapering quantitative easing before the close of 2013, and as Toronto-based foreign exchange expert Jack Spitz points out; ‘With payrolls being plus 200,000 last Friday the bar has been raised on the 18th of December for the start of tapering. It will put a bid to the US Dollar across the board. And, for Canada, it consolidates the bid against the Canadian Dollar.’
The ‘Loonie’ also came under pressure against the Pound as Canadian housing starts declined in November.
The number of both single-detached properties and urban multiple properties dropped last month, with a figure of 17,153 actual starts – down from 18,173 in the same period of the previous year.
The CAD/GBP exchange rate hit a low of 0.5719
According to Mathieu Laberge of the Canada Mortgage and Housing Corp; ‘The trend in housing starts has increased slightly in July, before stabilising in November. Overall, housing starts have been following a trend similar to sales on the existing home market. As sales rise relative to listings of existing homes, buyers are increasingly meeting their needs in the new home market.’
Over the next few days CAD/GBP movement could occur in response to Canada’s new housing price index.
UK industrial/manufacturing production, trade balance and growth figures will also be of particular interest.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9383 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.6836 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5726 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0328 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1451 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.7463 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0662 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4630 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8811 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9682 <
(Correct as of 14:35 GMT)
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