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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