Loonie Recovers After Hit from Canadian GDP

The Canadian dollar sank today after data that showed an unexpected decline of Canada’s economy. The currency recovered somewhat by the end of the trading session, erasing losses against the US dollar and the Japanese yen, also trimming the drop versus the euro.
Canada’s gross domestic product fell 0.2 percent in March from February and declined 0.1 percent in the first quarter of 2015 from the previous three months. The report was a bitter disappointment for many traders as they had been counting on an increase. This allowed the US dollar to gain its Canadian counterpart as the decline of US GDP had been anticipated by analysts.
Despite the initial huge dive, the currency has been able to recover with the help of crude oil prices. Futures for crude demonstrated impressive gains today as US drillers reduced the number of oil rigs last week.
USD/CAD rallied from 1.2435 to 1.2527 but close basically at the opening level by the end of the session. EUR/CAD went up from 1.3611 to 1.3749 before ending trading at 1.3656. CAD/JPY slid from 99.63 to 98.98 intraday but bounced to settle at 99.77.

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