FX report for the week ending November 4, 2016
It’s time for another Rate Tracker from theCurrent! Every Monday we’ll provide charts and information giving you a quick rundown of how the Canadian dollar fared against three of the world’s most important currencies – the US dollar, the euro, and the pound sterling. You can also find important news and other events that could affect the dollar in an easy to read table. We hope this will help connect you even more to Continental and the wide world of foreign exchange. Enjoy!
USD and CAD
- The US dollar continued to gain against the loonie last week but trimmed its gains on Friday as unpredictability over the aftermath of this week’s US presidential election overshadowed the release of mostly positive data. The US federal fund rate was maintained at 0.5% on Wednesday as expected
- In Canada, the number of employed people beat expectations, rising by 43,000 as opposed to the forecast of a 10,000 decline, and the unemployment rate remained unchanged last month at 7.0%. Canada’s GDP posted a slight gain of 0.2% in August, matching the forecast. Meanwhile, the US economy added fewer jobs than anticipated and the unemployment rate was in line with expectations at 4.9%
- The US dollar closed the week stronger against the loonie at 1.3404, up 0.14% from previous weeks close
EUR and CAD
- The euro made strong gains against the loonie, opening at 1.4692 at the beginning of the week to close at 1.4928.
- The euro remained supported by relatively strong economic data from the eurozone and uncertainty regarding the US presidential elections
- The EU Economic forecasts by the European commission is expected on November 9, 2016
GBP and CAD
- The Canadian dollar dropped for 4 days consecutively against the British pound last week on falling oil prices, Brexit news and the Bank of England’s economic outlook
- The pound’s gain can be linked to the UK high court’s ruling on Thursday, that the government does not have the authority to trigger Article 50 of the Lisbon Treaty to start the UK’s exit from the EU without a parliamentary vote
- The Bank of England maintained its official bank rate at 0.25% on Thursday and said it’s no longer expecting to cut interest rates again this year. The GBP/CAD pair closed the week at 1.6772
News with Possible Impact on Currencies
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