Canadian Dollar Forecasts: CAD vs USD & GBP Exchange Rates Fell to 5-Year & 2-Week Lows

October 16, 2014 - Written by James Fuller

STORY LINK Canadian Dollar Forecasts: CAD vs USD & GBP Exchange Rates Fell to 5-Year & 2-Week Lows

The Canadian Dollar (CAD) continued to slide against the US Dollar (USD), Euro (EUR), Pound Sterling (GBP) and other currency peers on Thursday as concerns over global growth and falling commodity prices combined with poor manufacturing sales data.

Volatility has been the name of the game this week as fears over a triple-dip recession in Europe increased and traders grow increasingly worried over the overall performance of the global economy.

Geopolitical concerns over the Ebola virus and the conflict against the self-proclaimed Islamic State were also weighing upon sentiment.

Here are the latest CAD rates today:

The Canadian Dollar to Aus Dollar rate today is +0.48 pct higher with a conversion rate of 1 CAD equals 1.01439 AUD.
The Canadian Dollar to Euro exchange rate is +0.18 pct higher at 1 CAD equals 0.69359 EUR.
The Canadian Dollar to Pound exchange rate is -0.54 pct lower with a conversion of 1 CAD equals 0.55217 GBP.
The Canadian Dollar to New Zealand Dollar exchange rate converts +0.23 per cent higher at 1 CAD is 1.11689 NZD.
The Canadian Dollar to US Dollar conversion rate is +0.09 pct higher at 0.88836 CAD/USD.

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Canadian Dollar to US Dollar Rate Today: CAD/USD

The CAD vs USD slid to a five-year low earlier in the week as oil prices declined below the key $80 per barrel level for the first time since June 2012.

As crude oil is, Canada’s most traded export the nation’s currency was dragged lower along with anything else related to the commodity.

It has been a rough year for the Canadian Dollar so far, as the ‘Loonie’ had been trading above the 94-cent level as recently as July and was strong for a good part of 2013.

Since then, it has been slowly sliding lower, but a lot of that was not because of weakness on Canada's part, instead it was mostly due to the strength of the U.S. Dollar as the American economy was beginning to surge ahead.

CAD Falls Over Domestic Data

Today however, the ‘Loonie’ did fall because of domestic data. According to Statistics Canada manufacturing sales fell by 3.3% to $52.1 billion, the fall was the first recorded in 2014. The decline was mostly down to a fall in demand for motor vehicles and motor parts. The fall was also more than economists’ expectations. Analysts had been forecasting for a fall of 1.6%.

The volatility being seen in the market is likely to keep demand for the ‘Loonie’ subdued and continue to lend support to the safe haven US Dollar.

‘Disinflationary pressures warn of more slack in the global economic outlook than expected, complicated by Ebola and geopolitical risks. Soft US data released yesterday, including disappointing retail sales...served to fuel fears,’ said Camilla Sutton, chief forex strategist and managing director at Scotiabank Global Banking and Markets.

The US Dollar (USD) was strengthened by the release of data, which showed that the number of Americans filing for unemployment benefits in the week ending on October 11 declined by 23,000 to 264,000 from the previous week’s total of 287,000. Economists had been expecting a figure claims to rise.

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