The Canadian dollar dropped today versus safer currencies as macroeconomic fundamentals were surprisingly bad both in Canada and in the United States. The currency still managed to outperform the euro after the earlier drop.
Canada’s gross domestic product dropped 0.1 percent in November after it posted no change in October. An unpleasant surprise, considering that analysts promised a 0.2 percent growth. Another economic data from Canada was also much worse than expected today.
The major Canada’s trading partner, the United States, was also a source of disappointment today. Chicago Purchasing Managers’ Index was down from 62.5 in December to 60.2 this month, while an increase to 63.1 was expected. Consumer confidence deteriorated from to 64.8 to 61.1 on a monthly basis in December, compared to the median forecast of 68.2.
USD/CAD rose from 1.0013 to 1.0026 as of 22:09 GMT today, while CAD/JPY was down from 76.20 to 76.01. EUR/CAD dropped from 1.3159 to 1.3116.
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