The Canadian Dollar remained trading lower against the Pound and was weaker against the US Dollar despite GDP data coming in as forecast. Against the Euro the ‘Loonie’ ticked higher due to inflation worries in the Eurozone.
According to Statistics Canada the nation’s gross domestic product expanded for a fifth-straight month in November suggesting that the Canadian economy is picking up steam. The expansion was the result of increased production of gas and oil. Commodity output increased countering the decline witnessed in the preceding month. Oil and gas production rose by 2.6% and mining production picked up by 1.3%.
The ‘Loonie’ was unable to take advantage of the positive data as the US Dollar strengthened on the back of a string of positive data releases. The Pound was stronger following the publication of data which showed that consumer confidence in the UK climbed to its highest level in more than six-years.
A report by TD Bank economists also pulled the ‘Loonie’ lower with it saying that it expects the currency to fall further by the summer before seeing a revival.
“The factors which have taken the Canadian Dollar lower are unlikely to shift over the next year or so. In the near term, the ‘Loonie’ is forecast to fall as low as 85 US Cents by mid-year. However, it is then expected to appreciate slightly as inflation in Canada starts increasing and the Bank of Canada gets closer to raising interest rates,” said TD.
Also weighing upon the currency was the ongoing concern over emerging and commodity based markets in the wake of the US Federal Reserve’s decision to taper its quantitative easing programme by a further $10 billion.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5413 ,
Canadian Dollar,,US Dollar,0.8920 ,
Canadian Dollar,,Euro,0.6605 ,
Canadian Dollar,,Australian Dollar,1.0250 ,
Canadian Dollar,,New Zealand Dollar,1.1061 ,
Pound Sterling,,Canadian Dollar,1.8473 ,
US Dollar,,Canadian Dollar,1.1212 ,
Euro,,Canadian Dollar,1.5141 ,
Australian Dollar,,Canadian Dollar,0.9760 ,
New Zealand Dollar,,Canadian Dollar,0.9045 ,
[/table]
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