The Loonie strengthens following strong economic data.
Thursday 17 October, 2019
Daily Currency UpdateCAD - Canadian DollarThe Loonie appreciates strongly this morning following data released by Statistics Canada; manufacturing sales rose 0.8 percent to $57.6 billion in August, versus the 0.7 percent expected, and following two consecutive monthly declines. Sales were up in 11 of 21 manufacturing industries, representing 62.9 percent of the total manufacturing sector. The transportation equipment and fabricated metal industries were mainly responsible for the growth in August. Manufacturing sales in constant Canadian dollars increased 0.6 percent in August, reflecting higher volumes of goods sold. Another fundamental factor positively influencing the Loonie came from the ADP Canada National Employment Report. Employment in Canada increased by 28,200 jobs from August to September. The August total of jobs added was revised up from 49,300 to 109,900.
Key MoversThe British Pound is erasing some of its gains after Juncker rules out the Brexit deadline of Oct. 31st. Juncker tells reporters there is no need for an extension now, there is a deal on the table. Juncker is leaving strong hints, but nothing definite that the EU won't allow a Brexit extension if the deal is voted down in parliament. Merkel, Macron, and other EU leaders have repeated time and time again that they will never be the reason for a no-deal Brexit. According to Bloomberg, Prime Minister Boris Johnson says the U.K. has reached a divorce deal with the European Union. That agreement, he says, should get through parliament on Saturday, which would allow Britain to exit as agreed on Oct. 31st. However, a Brexit deal is only as good as its chances to pass a vote in parliament.The U.S. dollar index falls 0.31 percent this morning. The main driver today came from the Federal Reserve Bank of Philadelphia; its manufacturing index stumbled towards 5.6 when the expected number was 7.3, falling 6 points compared with September, when the index came in at 12. Current shipments and new orders were mixed. According to Market Watch, economists said firms in Philadelphia are less sensitive to the China trade war than manufacturers in other regions.
- USD/CAD: 1.3134 - 1.3200 ▼
- EUR/CAD: 1.4597 - 1.4636 ▲
- GBP/CAD: 1.6754 - 1.6906 ▼
- AUD/CAD: 0.8912 - 0.8977 ▲
- NZD/CAD: 0.8315 - 0.8361 ▲