CAD Drops vs. USD as Economy Contracts

The Canadian dollar ended Friday with losses against its US counterpart as Canada’s economy unexpectedly contracted in August. At the same time, the loonie managed to end the session flat versus the euro and to jump against the Japanese yen.
Canada’s gross domestic product shrank 0.1 percent in August, following no change in the previous month. It was a frustrating result for economists, who predicted another month of stagnation. And of course it is not a good sign for investors interested in bringing their money into the country.
The loonie fell against the greenback as a result of the data, yet managed to trim losses by the end of trading. What is more, the Canadian currency was able to jump against the yen, which suffered from the surprise monetary easing by Japan’s central bank.
USD/CAD jumped from 1.1187 to 1.1332 before ending the session at 1.1264. EUR/CAD closed flat at 1.4108. CAD/JPY surged from 97.64 to 99.67.

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