Canadian Dollar Rises on GDP, Loses Gains

The Canadian dollar advanced yesterday after data showed that the nation’s economy grew in October faster than was expected. The currency retreated versus the US dollar and the euro today, but retained its gains versus the Japanese yen.

Canadian gross domestic product expanded 0.3 percent in October, at the same rate as in September. Analysts have expected it to grow just 0.1 percent. The expansion was led by the manufacturing sector.

The loonie rallied on the news, but gave away some of its gains. One of the reasons for the drop was decline of prices for crude oil — the major Canada’s export. Crude fell 0.21 percent to $98.70 per barrel in New York today.

USD/CAD was up from 1.0605 to 1.0624 as of 4:18 GMT today. EUR/CAD ticked up from 1.4524 to 1.4537. CAD/JPY traded at about 98.17 after rallying from 97.70 to 98.12 yesterday.

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