Economic data releases that could impact the Canadian dollar this week (Dayle Littlejohn)

Pound to Euro Reaches 2-Month High

Over the next two days Canada are set to release a host of economic data releases which could have an impact on Canadian dollar exchange rates. 

Today at 1.30pm, New Housing Price Index numbers released by the Statistics of Canada which measures selling prices of new residential houses is set to be released. Over the last 2 years this number has been on the rise which is a positive for the Canadian dollar. The release itself doesn’t normally cause major swings on Canadian dollar exchange rates however the release could give the loonie a slight boost later today.

Tomorrow at 1.30 three different data releases will be released at the same time which causes additional volatility, especially when the releases can all have a major impact on CAD exchange rates if they were released on their own. In my opinion the most important release is the Unemployment rate numbers. The consensus is for no change at 6.8%. Over the last 12 months Unemployment has edged lower however the range has been a fall of 0.4%.

The other release that could have a major impact is net Change in Employment. This is a measure of change in the amount of employed people in Canada. This release has a direct impact on Consumer Spending as the more people employed the more amount of money will be spent. Last months release of 48k impressed for the Canadian dollar and this month is set to show a major decline to 2.5K. If this materializes this could be seen as negative for the dollar.

Lastly a data release that has the potential to impact all of the major currencies is Non Farm payroll numbers releases by the US also at 1.30pm tomorrow. Non Farm payroll measures new jobs created in Non Agricultural business. This is the last key release that could have an impact on whether the US raise interest rates in the upcoming weeks. It has been reported there is a 95% chance of a rate hike this month and therefore investors are going to flock to the US dollar. This could cause a dip in CADUSD exchange rate however provide a potential spike in CADEUR exchange rates.

If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **