USDCAD Falls Awaiting Growth Data

The Canadian dollar was lower Monday ahead of the latest economic growth figures coming out later in the week.

The loonie was down 0.1 of a cent to 88.88 cents US following a strong run last week that saw the currency run up almost a third of a cent. Performance was helped in part by a strong wholesale trade report and higher than expected inflation date for October, which raised speculation about when the Bank of Canada might hike interest rates.

Statistics Canada releases its reading on September gross domestic product and the third quarter on Friday. Economists expect that the agency will report that GDP rose by 0.4 per cent during the month after dipping 0.1 per cent in August, adding up to an annualized pace of 2.1 per cent.

Investors will also get information this week on how the U.S. economy is performing.

The American GDP data comes out Tuesday. It is the second revision to third quarter GDP and it’s generally expected that it will show growth softened a bit from a 3.5 per cent annualized reading to 3.3 per cent, reflecting Chinese weakness and a deteriorating European economy that is struggling to stay out of recession.

via The Globe and Mail

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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