As was the case for much of last week, influential Canadian economic reports have been few and far between over the last few days.
Canadian Dollar movement has therefore been driven by global developments.
While a lack of UK news also kept the Pound trading in a narrow range, the ‘Loonie’ broadly softened as investors turned away from higher-risk assets and commodities declined.
Lacklustre Chinese trade data continues to take a toll on the mood of the market and Ukraine concerns have added to the risk-off environment.
Copper is a commodity which has particularly struggled and the asset shed 8.3 per cent over the last three trading sessions to hit its lowest level for nearly four years.
Oil prices have also been heading lower.
The Canadian Dollar was unaffected by the domestic Teranet/National Bank HPI, which showed a month-on-month gain of 0.3 per cent in February and a year-on-year advance of 5.0 per cent.
While the publication of Canada’s new housing price index could result in ‘Loonie’ movement tomorrow, investors are more likely to be focussing on Australian employment figures, China’s industrial production/retail sales reports and advance US retail sales data.
If industrial production in China is shown to have advanced in February by less than the annual 9.5 per cent gain forecast by economists it will add to slowdown fears and could drag commodity-driven currencies lower still.
China’s retail sales are expected to have increased by 13.5 per cent in February, year-on-year, following an annual gain of 13.1 per cent in January.
Canada’s new housing price index is forecast to have advanced by 1.3 per cent in January year-on-year, unchanged from the previous month.
On Friday GBP/CAD movement is likely to result from the release of UK trade balance figures.
The UK construction output report may also have an impact.
In other Canadian news, Canada’s Prime Minister has been attempting to reduce the nation’s trading reliance on the US by forging a trade pact with South Korea.
PM Stephen Harper was quoted as saying; ‘Let me sum it up this way: much of the world’s economic growth over the next generation will be in Asia. With this deal today, we have opened the door to opportunities that will boost Canadian prosperity now and for decades to come.’
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,0.5410,
Canadian Dollar,,US Dollar,0.9008,
Canadian Dollar,,Euro,0.6489,
Canadian Dollar,,Australian Dollar,0.9976,
Canadian Dollar,,New Zealand Dollar,1.0657,
US Dollar,,Canadian Dollar ,1.0980,
Pound Sterling,,Canadian Dollar,1.8467,
Euro,,Canadian Dollar,1.5410,
Australian Dollar,,Canadian Dollar,1.0021,
New Zealand Dollar,,Canadian Dollar,0.9390,
[/table]
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