Canadian Dollar Drops for Third Straight Day

The Canadian dollar dropped today, falling for the third consecutive day against its major peers, after Canada’s economy demonstrated unexpected contraction in October.

Canada’s gross domestic product fell 0.3% in October after rising 0.4% in September. Experts had predicted an increase by 0.1%. The report explained the contraction by “widespread decreases in manufacturing output and lower oil and gas extraction.”

Today’s data followed yesterday’s inflation report that showed surprise decline of consumer prices in November. Retail sales climbed 1.1% in October, far more than analysts had promised — just a meager rise by 0.2%.

USD/CAD climbed from 1.3481 to 1.3525 as of 16:20 GMT today, reaching the daily high of 1.3556. EUR/CAD rallied from 1.4069 to 1.4142. CAD/JPY dropped from 87.15 to 86.65.

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