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Mon 15 Jul 2024 10:26GMT

Canadian Dollar At Two-Year Low CAD/USD

Published: 2 Dec at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Canadian Dollar, USA, Canada, France, Germany, India, Italy,

In a comparatively heavy news day the currency markets have seen some notable movement.

It's been a good trading day for the Pound in particular as stronger-than-expected UK manufacturing PMI saw the British currency record widespread gains.

The Euro was also able to advance on the US Dollar as final manufacturing reports for France, Germany, Italy and the Eurozone trumped previous estimates.

Meanwhile, India's Rupee was supported by encouraging domestic data and approached a two-week high against its US counterpart.

However, the Canadian Dollar stumbled during the local session as disappointing export data and inflation concerns increased the odds of the Bank of Canada opting to hold interest rates at current lows for longer than previously estimated.

It had been hoped that the BOC would be among the first developed-nation central banks to increase interest rates but with Canada's economic recovery appearing patchy at best the odds of that happening have fallen considerably.

According to one Toronto-based currency expert; 'You have very little positive sentiment around the Canadian Dollar, and that was revealed by the way the market reacted to a very good gross domestic product number on Friday. Strong data is going to be almost discounted, because the bank is still concerned about the overall health of the economy, and it's tied directly to these export figures'.

The 'Loonie' also tumbled to a multi-year low against the Pound and extended losses against the US Dollar as the US ISM manufacturing measure exceeded expectations and boosted the 'Greenback'.

Although economists saw the index of US manufacturing falling from 56.4 to 55.1 in November it actually rose to 57.3 in a sign that the US economic recovery may not be floundering as much as feared.

Tomorrow Canadian Dollar movement could be inspired by US news, but the Bank of Canada's rate decision on Wednesday will be the major market mover.

As it stands the Canadian Dollar is trading against the Pound in the region of 0.5747 and against the US Dollar in the region of 0.9399.
As of Monday, 2nd December 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.208, GBP USD exchange rate was 1.6359, GBP CAD exchange rate was 1.7412, and GBP INR exchange rate was 101.9145.
Patrick James About Author: (289 Posts)Patrick completed his economics degree just as the global financial crisis struck in 2008. In the intervening years Patrick has made his mark, climbing to a prominent position within a large financial services provider. As part of his role Patrick uses his expertise to advise companies of the best ways to safeguard against currency risk.

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