The ‘Loonie’ dropped against the US Dollar despite positive Canadian data on the expectation that the nation’s 4Q GDP will disappoint.
The Canadian Dollar Exchange Rate was in the region of 0.9750 against the US Dollar as of 14:05 pm GMT
Prior to the release of Canadian GDP figures for the last quarter of 2012 the ‘Loonie’ lost ground against the US Dollar.
The currency proved unable to advance even after relatively positive industrial production and raw materials data.
Statistics Canada reported that raw material prices increased by 3.8 per cent from December to January, 2.3 per cent better than predicted by economists. This marked the most significant jump for 16 months and makes up for the previous months 2 per cent decline.
However, although this figure seems positive on the surface the spike was largely due to mineral fuel price increases and is still 4.7 per cent less than the figure recorded in the same period of last year.
Industrial product prices held their level for the second consecutive month. The producer price index was down 0.2 per cent on the year.
A chief economist with the Canadian branch of HSBC Holdings Plc, David Watt, asserted: ‘We’ve got the GDP data tomorrow and the Bank of Canada next week, so I think what we’ve got in general is a market that is relatively cautious to the Canadian Dollar right now.’
The GDP figures are expected to show contraction of 0.2 per cent in December, resulting in growth of 0.6 per cent for the fourth quarter as a whole. The figures are due for release at 13:30 GMT.
The Bank of Canada will release its interest-rate decision on the 6th of March.
The Canadian Dollar has been trading below parity with its American counterpart since the second week in February.
Current Canadian Dollar Exchange Rates
The Canadian Dollar to Euro (CAD/EUR) exchange rate is trading at 0.7428
The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate is trading at 0.6415
The Canadian Dollar to US Dollar (CAD/USD) exchange rate is trading at 0.9750
The Canadian Dollar to Australian Dollar (CAD/AUD) exchange rate is trading at 0.9510
The Canadian Dollar to New Zealand Dollar (CAD/NZD) exchange rate is trading at 1.1798
The Canadian Dollar to Japanese Yen (CAD/JPY) exchange rate is trading at 90.0742
These exchange rates were correct as of 14:05 pm GMT
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