The Canadian dollar had a troubled day following the release of wholesale sales figures yesterday afternoon. An indicator of consumer spending, they do not usually have an especially notable impact on the value of the currency. The figures came in significantly worse than forecast, however, and as a result we saw the Canadian currency lose a lot of ground throughout the afternoon. After a difficult 6 months which saw the Canadian dollar consistently drop off, we had seen signs of life since the beginning of this month – until today. With the impact of yesterday’s figures, eyes will be on today’s inflation data as – based on last month’s central bank meeting – they will be a strong indicator for how the currency will move from here.
The Japanese yen made up ground against sterling yesterday morning, but lost its footing throughout the afternoon. Traders were responding to comments from Japanese Prime Minister Shinzo Abe regarding structural reforms that need to be put in place to give the country more control over the value of its currency.
Looking forward to today we have Chinese manufacturing data released this afternoon. Strong figures will boost commodity-backed currencies such as the Australian dollar and South African rand, with China being a major export destination for both countries.
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