An absence of US economic data on Monday has seen the US Dollar exchange rate relatively static against the majority of its currency peers. The Canadian Dollar, meanwhile, has appreciated fractionally after wholesale sales data printed above expectations.
The US Dollar to Canadian Dollar exchange rate is currently trending in the region of 1.1275.
Last Friday’s American domestic data was generally positive and allowed the ‘Greenback’ (USD) to surge against the majority of its most traded currency competitors. Of particular note was an advance beyond the market consensus in the University of Michigan Confidence index and a huge appreciation in monthly Housing Starts.
Canadian data was also positive on Friday allowing the ‘Loonie’ (CAD) to make strides towards recovery after a week of sparse data publications. Most impressive of these results was the Bank of Canada Consumer Price Index, the Consumer Price Index and the Bank of Canada Core CPI which all met with the median market forecasts.
The US Dollar to Canadian Dollar exchange rate has fallen to a low today of 1.1251.
On Monday a lack of US data has seen the ‘Buck’ (USD) generally depreciate against the majority of its rivals. A web forum led by Federal Reserve official Jerome Powell has made no difference to the Dollar exchange rate as it made no mention of monetary policy or the US economy.
Compounding the ‘Greenback’ losses has been a decision by traders to pare bets on the timing of a benchmark rate revision amid global economic growth disparity.
The Canadian Dollar has gradually appreciated against the majority of its competitors after wholesales data printed better-than-expected. Month-on-month Wholesale Sales was forecast to decline from the previous figure of -0.2% to -0.3%, but the actual result showed an increase to 0.2%.
US Dollar to Canadian Dollar Exchange Rate Forecast to Advance
A complete absence of Canadian data on Tuesday is likely to cause the Canadian Dollar to soften against its major peers. Any major volatility will be as a result of either changes in foreign assets or the commodities market.
The US Dollar is likely to strengthen against the Canadian Dollar on Tuesday as monthly Existing Home Sales data is forecast to grow from -1.8% to 1.0%.
Tuesday’s Chinese data is likely to cause volatility for the currency market. Should the economic data prove to be negative it is likely to spark cautious trading. Of particular note will be the Chinese Gross Domestic Product data.
The US Dollar to Canadian Dollar exchange rate has advanced to a high today of 1.1279.
UPDATE
The US Dollar to Canadian Dollar exchange rate is currently trending in the region of 1.1246.
Sentiment towards the US Dollar has become increasingly negative over the past week or so as futures traders pared bets on the timing of a Federal Reserve benchmark rate hike. The delay to a rate hike is most likely as a result of anxieties over snail-paced global economic growth.
A lack of Canadian economic data could see the ‘Loonie’ (CAD) soften as it tracks the losses of its North American counterpart.
