Canadian Dollar to US Dollar (CAD/USD) Exchange Rate Gains Ahead of Retail Sales
The Canadian Dollar (CAD) is residing at 0.9312 against the US Dollar (USD) in a fairly consistent performance by the ‘Loonie’ to remain high within the 93/94 US cent boundaries, in the CAD/USD exchange rate.
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Today’s session has seen highs of 0.9320, and lows of 0.9307, for the Canadian Dollar as the US awaits influential inflation data this afternoon.
Canada is expected to publish dampened Retail Sales data on Wednesday, currently forecasted by economists to reach only 0.6% in May; just over half of April’s 1.1% figure.
However, in an otherwise quiet week by way of Canadian data, the ‘Loonie’ will be dependent on geo-political tensions and the movements of the US Dollar to alter the CAD/USD exchange rate.
The US Consumer Price Index is forecasted by economists to remain at 2.1% today, which will help to build a stable foundation for the US Dollar to gain upon. Moreover the US House Price Index is predicted to reach 0.2% in May, bettering April’s 0.0%.
However, with these positive figures in mind, the US could still receive a mixed bag of data today with Existing Home Sales figures expected to reach only 2.0% in June, a drop from May’s 4.9%
Furthermore US unemployment levels will be closely monitored on Thursday with the release of Initial Jobless Claims, and Continuing Claims data. Continuing Claims is currently expected to reach 2510K, higher than the previous 2507K. Moreover, Initial Jobless Claims are forecast to shoot up to 310K, proving higher than the previous 302K.
Experts in the field, Tomaz Cajner and David Ratner, both commented on the US unemployment situation: ‘The fight against unemployment during the recent recovery has been mainly one of bringing down the long-term unemployment rate.’
However recent employment figures have exceeded economists expectations, giving hope to the US job market advances.
Federal Reserve economists have commented on the recent positive US employment figures: ‘These encouraging developments appear consistent with rising employment of those previously reported as long-term unemployed.’
Chairwomen for the Federal Reserve, Janet Yellen, has stated that employment data will play a key role in enhancing the possibility of US interest rate hikes. However, Yellen has also stated that long-term unemployment in the US is of ‘grave concern.’
Yellen commented: ‘While long-term unemployment remains at exceptionally high levels and is a grave concern, I do think we are seeing improvements as the job market is strengthening. As confidence in the recovery grows and it strengthens, we should definitely expect to see improvements.’
Canadian Dollar to US Dollar (CAD/USD) Exchange Rate Gains
Wednesday sees the Canadian Dollar (CAD) trading slightly higher at 0.9334 against the US Dollar (USD). With recent decisions by the Bank of Canada to keep interest rates at 1.0%, economists have now speculated that interest rate hikes may begin mid 2015.
Scotiabank representative, Camilla Sutton, stated: ‘There has been a bit of back and forth with expectations for the first interest rate hike with it being pulled forward and then pushed back.’
Canadian Retail Sales figures released at 13:30 GMT will prove to be the main influence for any alterations in the CAD to USD exchange rate on Wednesday, as the US sees a relatively quiet week for data.
The US Dollar to Canadian Dollar (USD/CAD) exchange rate is presently resting at 1.0711.