Prior to the release of first quarter GDP figures for Canada the ‘Loonie’ declined against several of its main rivals, but after the nation’s economy was shown to have expanded by significantly more than expected losses were pared.
The Canadian Dollar Exchange Rate was in the region of 0.9680 against the US Dollar as of 14:30 GMT
According to the latest figures compiled by Statistics Canada, GDP expanded at a 2.5 per cent annualised pace in the three months from January – 0.2 per cent more than estimated and the nation’s most significant growth for six quarters.
In March GDP advanced 0.2 per cent month-on-month and 1.7 per cent on the year, rather than the 1.5 per cent expected.
After the data was published the Canadian Dollar strengthened against the US Dollar, pushing briefly back above 97 cents.
As explained by HSBC economist David Watt: ‘Things were better than expected and, given a lot of the bad news we’ve been getting elsewhere, it suggests the Canadian economy had some momentum in the first quarter of the year. That’s giving the Canadian Dollar a bit of a rally here, but I don’t think that it’s sustainable. I think the impact will fade as we start looking at Q2 numbers.’
Canadian data of interest next week includes building permits, PMI and unemployment figures.
US non-farm payrolls data will also be of interest. If the US employment sector improves significantly in the months ahead the Fed may still reign in quantitative easing before the close of the year.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9680 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7469 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6374 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0114 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2075 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5687 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0308 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3424 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8320 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9888 <
(Correct as of 14:30 GMT)
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