US Dollar to Canadian Dollar (USD/CAD) Exchange Rate Drops on Ivey PMI
An absence of American economic data on Monday has seen the US Dollar soften as economists’ debate the timing of a Federal Reserve interest rate revision. Stronger-than-anticipated Canadian domestic data has boosted the ‘Loonie’ (CAD).
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The US Dollar to Canadian Dollar exchange rate is currently trending in the region of 1.1187.
Uncertainties over whether the recent bullishness of the US Dollar was justified caused the ‘Greenback’ (USD) to buck the trend and soften against the majority of its most traded currency peers last week. Friday, however, saw the US Dollar regain those losses after labour market data printed impressively.
A distinct lack of Canadian data over the past two weeks has seen the ‘Loonie’ depreciate across the board; only managing to avoid huge declination by holding on to the coat tails of a surging ‘Greenback’ (USD).
The US Dollar to Canadian Dollar exchange rate has hit a low today of 1.0880.
On Monday an absence of US domestic data has seen the US Dollar generally decline against high-yielding currencies. Further weakness can be attributed to general confusion as to the timing of a Fed rate hike and the value of the US Dollar. ‘The market will want to reassess the speed with which the Fed will be moving from here,’ Valentin Marinov, Citigroup Inc.’s London-based head of European Group-of-10 currency strategy, said in an interview on Bloomberg Television’s ‘On The Move’ with Jonathan Ferro. ‘Overall the Fed is moving towards the exit, will be hiking rates before long, and that should, over the longer term, continue to support the Dollar’.
Monday’s solitary Canadian economic data publication, the Ivey Purchasing Managers Index, has initiated a ‘Loonie’ uptrend. Having hit 50.9 previously, the market consensus was an uptick to 52.5, but the actual result showed an increase to 58.6.
Forecast for the US Dollar to Canadian Dollar Exchange Rate
Perhaps only one of Tuesday’s American economic reports has the potential to initiate Dollar volatility. Consumer Credit is forecast to decline from $26.006 billion to $20.000 billion. Several Federal Reserve officials will be giving speeches in their respective territories and, depending on what they say, could provoke alterations for the US Dollar.
A singular Canadian economic data publication on Tuesday doesn’t have huge potential in terms of the provocation of ‘Loonie’ movement. Monthly Building Permits is predicted to decline massively from 11.8% to -6.5%.
Friday will be of importance to those invested in the Canadian Dollar with the publication of Unemployment Rate and Net Change in Employment.