CAD Lower After IMF Lowers Canada’s GDP Forecast

The Canadian dollar was slightly lower late morning Thursday as the International Monetary Fund warned the domestic economy will slow alongside the global economy this year.

The loonie was down 0.11 of a cent to 93.09 cents US as the IMF said economies around the world are taking longer than expected to recover.

Its latest economic outlook predicts global growth will be about three-tenths of a point lower at 3.4 per cent this year than it thought in April.

Canada’s economy is now expected to expand by 2.2 per cent this year, one-tenth of a point slower than previously thought and in line with the Bank of Canada’s latest forecast.

The dollar had earlier registered a small gain amid rising metal prices and strong manufacturing reports from China and Europe.

via Edmonton Journal

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza