The ‘Loonie’ began trade on Monday close to a four-day high against the US Dollar.
The commodity-driven currency was also stronger against the Pound, Euro and Yen as Russian stocks advanced and risk aversion eased.
GBP/CAD movement was limited following the release of UK housing data, but the Canadian Dollar consolidated gains following the release of domestic existing-home sales figures.
Existing home sales in Canada climbed by 0.3 per cent in February month-on-month following January’s 3.3 per cent decline.
Home sales were up 1.3 per cent on the year.
In a statement published with the figures, the Canadian Real Estate Association President noted; ‘Sales in February rebounded in some of the smaller local markets where activity was impacted by harsh winter weather in January.’
Average non-seasonally adjusted home prices climbed by an annual 10.1 per cent last month, reflective of the impressive sales activity in some of Canada’s pricier markets.
CREA now forecasts that national average home prices will rise by 3.8 per cent this year and economist Gregory Klump stated; ‘Marginally higher mortgage rates are likely to counterbalance the lift provided by stronger economic and continuing job growth, and restrain the momentum for sales activity.’
The Pound’s decline against the Canadian Dollar was also triggered by comments issued by Morgan Stanley.
According to a Bloomberg report, Morgan Stanley sees the Pound strengthening later this week in response to the release of the UK employment report and Bank of England minutes.
The UK budget may also help the Pound advance.
The institution noted that we ‘could see some of the more hawkish views, regarding slack in the economy, starting to become apparent in the minutes, which should provide Sterling with some support’.
The Pound edged lower against its major peers as the comments were made public.
Tomorrow Sterling fluctuations could be limited due to a lack of influential UK news.
‘Loonie’ movement however could be inspired by Canadian manufacturing shipments figures.
As the week progresses other Canadian data to be aware of includes the nation’s wholesale sales report and Canada’s consumer price index.
Economists have forecast that Canadian consumer prices increased by 0.6 per cent in February month-on-month and were up 1.0 per cent on the year.
Canadian retail sales figures will also be of particular interest. A month-on-month sales increase of 0.7 per cent has been forecast.
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,0.5423,
Canadian Dollar,,US Dollar,0.9033,
Canadian Dollar,,Euro,0.6494,
Canadian Dollar,,Australian Dollar,0.9946,
Canadian Dollar,,New Zealand Dollar,1.0650,
US Dollar,,Canadian Dollar ,1.1071,
Pound Sterling,,Canadian Dollar,1.8445,
Euro,,Canadian Dollar,1.5426,
Australian Dollar,,Canadian Dollar,1.0054,
New Zealand Dollar,,Canadian Dollar,0.9476,
[/table]
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