CAD Rises Ahead of BoC speech Fueled by Strong Manufacturing

The Canadian dollar headed higher Tuesday ahead of a key speech from the Bank of Canada on foreign exchange rates.

The loonie was up 0.25 of a cent to 90.75 cents US.

Bank governor Stephen Poloz is expected to deliver a speech on the role of the floating exchange rate in Canada at 12:30 p.m. ET , followed by a press conference. Traders will be especially interested in what Poloz has to say about how the currency ties in with exports and the country’s continued economic recovery.

“The topic is not a new one, as it is a core piece of the BoC’s monetary framework and has been widely discussed by almost every governor,” said Camilla Sutton , chief FX strategist and managing director at Scotiabank Global Banking and Markets.

Meanwhile, the latest Canadian manufacturing sales figures showed that there are still signs that the recovery is faring as expected.

Statistics Canada said manufacturing sales rose 2.5 per cent to $53.7 billion in July, exceeding the previous record of $53.2 billion set in July 2008 .

The agency said the July gain was mainly due to higher sales in the transportation equipment and primary metals industries.

Economists had expected a gain of one per cent, according to Thomson Reuters .

via Kitco

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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