Prior to the release of Canadian growth data the ‘Loonie’ advanced on the majority of its currency counterparts.
Although the Pound’s bullish attitude limited CAD/GBP gains, the commodity-driven currency was able to move away from a recent three-year low against the US Dollar.
The growth report was expected to show that the Canadian economy expanded in October.
According to Toronto-based industry expert Brad Schruder; ‘This market was already very short the Canadian Dollar and what we’re seeing is just an opportunity in thinly traded markets to take profit on some of those positions. And then as well a realisation that at its core, a decision by the Fed to taper is really a reflection of the overall strength of the US economy, and markets realising at some point, Canada will see a pick up from that as well.’
Economists forecast that the Canadian economy expanded by 0.2 per cent in October from September, following expansion of 0.3 per cent the previous month.
The result matched estimates. On the year the Canadian economy grew by 2.7 per cent following upwardly revised annual growth of 2.4 per cent.
Although the nation has been struggling to gather momentum for much of 2013 it seems that it will be exiting the year on a high as manufacturing and wholesale trade provide a boost.
The data detailed a 1.3 per cent rise in manufacturing and a 1.4 per cent advance in wholesale sales.
Meanwhile, separate figures showed that average earnings were up 1.4 per cent in October from the same period of a year earlier.
Gains against the US Dollar were limited as the ‘Greenback’ was supported by the news that consumer spending in the US jumped by the most for five months.
Although the ‘Loonie’ edged higher against the Pound, a lack of UK economic news limited movement.
With markets preparing to close for the Christmas holidays the CAD/GBP pairing may be trading in a tight range over the next few days.
CAD/USD fluctuations could be inspired by Thursday’s initial jobless claims report.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9432 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.6883 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5775 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0554 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1407 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.7336 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0600 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4523 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8768 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9473 <
(Correct as of 14:30 GMT)
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