FX report for the week ending October 28, 2016
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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 loonie’s struggles from the previous week continued as the possibility of interest rate cuts by the Bank of Canada hangs over it, while the reverse is the case for the US dollar as a rate hike in December is expected
- Lower than expected US crude oil inventories data also did little to help the Canadian dollar’s performance against the US dollar
- The USD/CAD pair ended the week at 1.3384, with a 0.45% increase for the US dollar from previous week’s close
EUR and CAD
- Signs of the eurozone’s recovery showed up in the purchasing managers’ index which increased from September’s figure
- With encouraging PMI numbers regardless, there are mixed signals emerging from the eurozone powerhouses with Germany’s economy well on the way to recovery but the French seemingly almost the opposite
- The euro ended the week stronger against the loonie closing at 1.4700
GBP and CAD
- The sterling initially seemed set for a rally late in the week after Q3 GDP results were higher than forecasts. That rally was not to be, as there appeared to be a mass pound sell-off by investors. Indications also seemed to point to a reduction in UK interest rates in the not-too distant future
- Significant news out of the UK this week is on Thursday, Nov 3, 2016 as the Bank of England’s Inflation report , monetary policy meeting and official bank rate decision are scheduled for release
- The GBP/CAD pair closed on Friday at 1.6317
News with Possible Impact on Currencies
Sources: Bank of Canada, Forex Factory, Continental Currency Exchange. Track currencies for yourself with our FREE Rate Watch.
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