Canadian Dollar (CAD) Exchange Rate Slightly higher after North American Data
Over the course of North American trading on Thursday the Canadian Dollar exchange rate edged slightly higher against peers like the British Pound and US Dollar.
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The commodity-driven asset took mixed US reports in its stride and was boosted by upbeat domestic data.
Gains against the Pound were also enabled by the fact that the British currency had broadly softened in response to a lack of upbeat UK news.
Reports showed that Canadian average weekly earnings climbed by 3.1 per cent in March, year-on-year, up from a positively revised annual increase of 2.5 per cent in February.
Meanwhile, Statistics Canada reported its first trade surplus for over two years as the first quarter current account deficit narrowed from a revised 15.64 billion Canadian Dollars to 12.39 billion Canadian Dollars.
The result was due to improved trade conditions.
A shortfall of 13.10 billion Canadian Dollars was anticipated.
Total exports climbed to their strongest level since mid 2008 as shipments of energy increased.
The report saw market analyst Scott Smith comment; ‘The take away is that going forward, this momentum needs to be sustained. After the slight selloff we saw yesterday in the ‘Loonie’, we’re moving back to our comfortable range in the mid C$1.08’s and we’re really trying to find that catalyst to shake the market up.’
The Canadian Dollar was stronger against the Pound and advanced on the US Dollar as US growth data for the first quarter was negatively revised.
A negative revision had been anticipated, but the US economy was shown to have contracted by 1 per cent in the first three months of the year – the first quarter of contraction since 2011 and steeper than the 0.5 per cent GDP decline anticipated.
Other US reports showed that pending home sales climbed by less-than-expected in April, rising 0.4 per cent instead of the 1.0 per cent forecast.
Tomorrow considerable ‘Loonie’ movement may follow the release of Canadian growth data.
The nation is predicted to have posted growth of 0.1 per cent in March, month-on-month, down from monthly expansion of 0.2 per cent in February.
Annualised quarterly growth of 1.7 per cent is anticipated for the first three months of the year.
Canada’s industrial product price and raw materials price indexes could also cause fluctuations in the domestic currency before the weekend.
The Canadian Dollar is trading against the British Pound in the region of 0.5511 and against the US Dollar in the region of 0.9211.