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CAD/USD Sheds Gains As US Manufacturing Expands And Oil Falls

Published: 1 Nov at 5 PM Tags: Euro, Dollar, Pound Sterling, America, Eurozone, Canadian Dollar, USA, Canada, Greece,

During North American trading the Canadian Dollar continued to feel the benefits of yesterday’s Canadian GDP data, which showed slightly greater growth then forecast.

The report showed that the Canadian economy expanded by 0.3 per cent in August, month-on-month, rather than the 0.1 per cent expected.

In the immediate aftermath of the data’s publication the ‘Loonie’ rallied against its peers and largely retained gains against the Pound, Euro and US Dollar as the European session opened.

However, the Canadian Dollar has pared its gain against the ‘Greenback’ today as a stronger than anticipated USD ISM manufacturing survey boosted the US asset.

While economists had predicted that the US manufacturing sector expanded by 55.0 in October the gauge actually rose to 56.4.

As foreign exchange strategist Greg Anderson observed, the stronger than expected result ‘just slightly increases the odds of a December taper. That’s still not the market’s core scenario, the market’s core scenario is still March. But hey, good ISM tells you that December is not off the table.’

‘Loonie’ gains were also limited as crude oil futures fell by 1.3 per cent to the lowest point for over three months.

The Canadian Dollar is currently trading against the US Dollar in the region of 0.9576

In other currency news, the Euro remains on the back foot against the majority of its currency peers as yesterday’s surprising inflation data continues to spark concerns of a future rate cut from the European Central Bank.

This morning’s less-than-impressive manufacturing figures for Greece did little to support the common currency and it continues to trade at multi-week lows against the US Dollar.

The Euro is currently trading against the US Dollar in the region of 1.3484
As of Friday, 1st November 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1809, GBP USD exchange rate was 1.5927, and GBP CAD exchange rate was 1.6598.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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