Canadian Dollar advances for second week

The Canadian dollar has strengthened for the second consecutive week following the central bank’s announcement that there have been improved trade reports and manufacturing orders.

Also, sales have exceeded forecasts resulting in the dollar advancing against 11 of the 16 most-traded currencies, rising 0.3 percent against its US counterpart since July 11.

Although the loonie was strong against the US dollar, it was down versus the Euro, the Japanese yen and the Australian dollar, of which has dropped to a 5-day low.

Producer prices in Australia rose at 1.0 percent in the second quarter as the Producer Price Index rose at a slower pace than the predicted 1.6 percent increase.

International investors bought C$10.7 billion of Canadian securities in May, compared with the C$3.5 billion forecast, and with this increased investor confidence, shipments and wholesale sales also rose.

The central bank has reported on its monetary policy this week and indicated that, despite economic growth in Canada in the first quarter being slower than expected domestic demand, exports remained strong which has meant that the second quarter has experienced quicker growth, so the central bank does not have any intentions of reducing interest rates as the economy is seemingly in good shape.

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