US Dollar to Canadian Dollar (USD/CAD) Exchange Rate Trending within Narrow Range as Growth Figures Impress
The US Dollar to Canadian Dollar (USD/CAD) exchange rate is trending within a tight range on Tuesday afternoon. This is as a result of impressive growth figures from both nations. However, with markets quiet over the Christmas period, the impact of the impressive data has been comparatively minimal.
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The US Dollar to Canadian Dollar exchange rate is currently trending in the region of 1.1637.
US Dollar (USD) Exchange Rate Appreciated on Growth Figures
Despite the fact that some of the US data produced disappointing results, a much better-than-anticipated third-quarter Gross Domestic Product figure caused the US Dollar to appreciate against nearly all of its most traded currency rivals. Annualised GDP saw third-quarter growth of 5.0%, well up from the previous figure of 3.9% and trumping the median market forecast of 4.3%.
‘This is a net positive for the Dollar,’ said Quincy Krosby, a market strategist at Prudential Financial based in Newark, New Jersey, which oversees $1 trillion in assets. ‘These are the kind of numbers that are in line with a recovery in the real economy, the kind of recovery that’ll be felt on Main Street.’
The US Dollar to Canadian Dollar exchange rate has fallen to a low today of 1.1623.
Canadian Dollar (CAD) Exchange Rate Strengthens on GDP
Canadian growth data produced positive results on Tuesday, causing the ‘Loonie’ (CAD) to rally versus many of its major peers. On a yearly basis, Canadian GDP grew by 2.3%, down from the previous figure of 2.4% but avoiding the forecast declination to 2.1%. Similarly, month-on-month GDP declined from the previous figure of 0.4% to 0.3%, but avoided the market consensus of a drop to 0.1%.
US Dollar to Canadian Dollar (USD/CAD) Exchange Rate Forecast to Soften
Although both neighbouring nations produced good growth data, many of the US publications didn’t print impressively. A huge declination in Durable Goods Orders is likely to weigh on the US Dollar and limit the currency’s gains
The US Dollar to Canadian Dollar exchange rate has reached a high today of 1.1667.