Canadaâ€™s dollar reached almost a 12- week low against its U.S. counterpart after the nationâ€™s gross domestic product unexpectedly shrank for the first time in six months, spurring bets interest rates wonâ€™t be raised soon.
The currency traded below parity with the U.S. dollar for a third day after Statistics Canada said output fell 0.1 percent to an annualized C$1.29 trillion ($1.29 trillion) in August from July, compared with a 0.2 percent increase forecast in a Bloomberg survey. A report on Nov. 2 is forecast to show hiring slowed this month. The currency pared losses as crude oil, Canadaâ€™s biggest export, increased and Canadian stocks rose.
â€œThe weaker-than-expected GDP print has the market questioning the Bank of Canadaâ€™s hawkish bias,â€ said Joe Manimbo, a market analyst in Washington at Western Union Business Solutions, a unit of Western Union Co. â€œAny slowing in hiring in Canada is liable to push the loonie further below parity against the greenback.â€
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.