• The Canadian dollar had a good day yesterday, holding fairly steady against a strong British pound throughout the day. It opened on relatively weak footing after falling oil prices (a major Canadian export) coincided with a strong US dollar, pushing traders to sell off the Canadian currency in favour of its US counterpart. We saw a recovery in the afternoon, however, with wholesale sales data coming in above forecast. Though the monthly figures were still well below the previous month’s, many expected a more significant drop than yesterday’s figures showed. Tomorrow’s inflation and retail sales data will be influential.
• The Australian dollar was undermined slightly yesterday following comments from the central bank Governor. He highlighted the bank’s ethos to spur on economic growth, seemingly reducing the potential of an interest rate hike in the medium term.
• The Indian rupee gained to three-week highs. The government has made a reduction of the budget deficit a priority; as a result, traders are betting on increased investment from overseas – pushing up demand for the currency.
• Early this morning we had manufacturing figures out of China, which showed a pick-up in the Chinese economy in July as their stimulus package began to take effect.
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