Canadian Dollar (CAD) Exchange Rate: ‘Loonie’ falls against Euro, British Pound, US Dollar
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The currency’s fall came despite the publication of data which showed that Canadian Gross Domestic Product (GDP) expanded for a second consecutive month in February.
According to the data released by Statistics Canada, the North American nation’s economy expanded by 0.2%, a decline from the previous figure of 0.5% but one that matched economist forecasts.
Annually the Canadian economy expanded by 2.5%.
The rise indicates that the impacts of the extreme winter weather that hit much of North America have eased due to milder spring weather.
It is also slightly stronger than the 1.5% expectation in the Bank of Canada’s latest monetary policy report.
Moreover, oil and gas prices are up strongly on a year on year basis, auguring well for activity in this key sector of the economy,” said an economist at TD Bank.
Against the Pound, the ‘Loonie’ was trading down as economists raised their bets that the UK economy will continue to strengthen.
That view was reinforced by yesterday’s GDP data and a report which showed that consumer confidence in the country climbed to its best level since before the start of the financial crisis in 2007.
Against the Euro, the ‘Loonie’ fell after a eagerly anticipated Eurozone inflation report showed that consumer prices ticked higher in April, easing pressure upon the European Central Bank to introduce measures such as negative rates and quantitative easing at next week’s policy meeting.
The US Dollar to Canadian Dollar (USD/CAD) exchange rate, meanwhile, pushed higher as investors widely ignored today’s disappointing US GDP data and instead chose to look ahead to this evening’s Federal Reserve interest rate and monetary policy decision.
Currently the Canadian Dollar is trading against the British Pound in the region of 0.5406 and is trading against the US Dollar in the region of 0.9112.