Loonie Bounces as Canadian Economy Exits Recession

The Canadian dollar repeated yesterday’s performance today, falling at the first half of the trading session but bouncing later. The currency did not completely erase its losses against the euro and the Japanese yen but managed to rebound to the opening level versus the US dollar.
Canada’s gross domestic product rose 0.5 percent in June after falling for several consecutive months. What is more, the growth was bigger than analysts had anticipated (0.2 percent). The report said:

The increase in June was broad based, led by mining, quarrying, and oil and gas extraction and, to a lesser extent, wholesale trade, the finance and insurance sector as well as arts and entertainment.

Still, the Canadian currency was not as strong as it could have been considering the positive news. The reason for the underperformance is the big (more than 3 percent) slump of crude oil prices.
USD/CAD rallied from 1.3139 to 1.3232 intraday but retreated to the opening level as of 14:03 GMT today. EUR/CAD was up from 1.4729 to 1.4821 but noticeably below the daily high of 1.4961. CAD/JPY fell from 92.24 to the low of 90.38 before trading at 91.09.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *