CAD Rises After China PMI Expansion Figures

The Canadian dollar was higher Monday amid mixed economic news from Asia and Europe.

The loonie rose 0.14 of a cent to 93.15 cents US on top of a gain of almost two-thirds of a cent on Friday to a five-month high. The currency rose sharply as higher than expected inflation data on Friday raised questions about whether the Bank of Canada might move interest rates higher sooner than thought.

“On the back of the CPI release, expectations for the BoC first interest rate hike increased marginally, but still stand at just a 13 per cent probability in the next year,” said Camilla Sutton, Chief FX Strategist, Managing Director Scotiabank Global Banking and Markets.

Meanwhile, data released Sunday showed the Chinese manufacturing sector moving into expansion territory. HSBC’s purchasing managers index hit a seven-month high at 50.8, the first time the index has moved above the 50 level since December.

via The Globe and Mail

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza