Canadian Exchange Rate

On the foreign exchange market, the canadian exchange rate has recovered some colors against the dollar as a result of ads very reassuring about the European economic and fiscal situation of countries in difficulty. The markets have indeed received the bond issue of 1.039 billion euros in three years and eleven made by Portugal. Even if the budget crisis in Europe is far from over, this news has impacted the risk aversion of investors to the detriment of the U.S. dollar, considered a safe haven.

Thus, the canadian exchange rate has awarded 0.31% to finish at 1.2720 dollar. In the UK, the British pound has greatly strengthened against the dollar and the euro following the announcement of the progress of British industrial production in July. Thus, the “cable” gained 0.75%, ending at 1.5469 dollar and EURGBP dropped 0.43% to 82.20 pence.

Overseas, we note the decision of the Canadian Central Bank to raise its key rate to 1%, against 0.75% previously. This announcement had a positive effect on the canadian exchange rate which has appreciated against most currencies of its reference, especially as analysts predict a further possible increase in rates in October. Cross USD/CAD has therefore depreciated more than 1%, 1 U.S. dollar against 1.0371 the Canadian Exchange Rate. Even finding against the single currency, the EURCAD having lost 92 pips to end the cables from 1.3190 Canadian dollars.