TheÂ Canadian dollar today crashed toÂ new lows against theÂ US dollar following theÂ release ofÂ disappointing Canadian Q1 GDP data inÂ theÂ early American session. TheÂ loonie’s fall triggered aÂ rally inÂ theÂ USD/CAD currency pair asÂ investors dumped theÂ commodity-linked loonie inÂ favor ofÂ theÂ greenback.
TheÂ USD/CAD currency pair today rallied from aÂ low ofÂ 1.2815 toÂ aÂ high ofÂ 1.2984 following theÂ Canadian andÂ US releases.
TheÂ currency pair was onÂ aÂ downtrend from theÂ start ofÂ today’s session toÂ theÂ mid-European session when it slowly started rising just before theÂ American session. TheÂ release ofÂ theÂ Canadian GDP growth data forÂ theÂ first quarter byÂ Statistics Canada is what accelerated theÂ pair’s rally. TheÂ Q1 GDP growth came inÂ atÂ anÂ annualized 1.3%, which was much lower than theÂ expected 1.8% growth, triggering theÂ loonie’s down slide. TheÂ monthly GDP data came inÂ atÂ 0.3% bettering expectations byÂ 0.1%, while theÂ annualized GDP print met expectations byÂ coming inÂ atÂ 2.9%, but both print’s could not reverse theÂ loonie’s drop.
Positive releases from theÂ US docket such asÂ theÂ PCE data released byÂ theÂ Bureau ofÂ Economic Analysis, which came inÂ atÂ aÂ monthly 0.2% andÂ anÂ annualized 1.8% meeting expectations, also contributed toÂ theÂ pair’s rally. TheÂ positive initial jobless claims data released byÂ theÂ Department ofÂ Labor also boosted theÂ greenback.
TheÂ currency pair’s future performance is likely toÂ be influenced byÂ tomorrow’s US non-farm payrolls data andÂ theÂ Canadian RBC Manufacturing PMI.
TheÂ USD/CAD currency pair was trading atÂ 1.2979 asÂ atÂ 15:28 GMT having rallied from aÂ low ofÂ 1.2815. TheÂ CAD/JPY currency pair was trading atÂ 83.65 having dropped from aÂ high ofÂ 84.97.
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