Canadian Dollar Ends Trading Strong, Getting Help from Various Factors

The Canadian dollar ended Friday’s trading extremely strong thanks to the positive domestic macroeconomic data, rising crude oil prices, and the general positive market sentiment.

Statistics Canada reported that gross domestic product rose 0.1% in April following the 0.3% increase in March. Economists had predicted no growth.

The Industrial Product Price Index rose 1.0% and the Raw Materials Price Index rose 3.8% in May. Both indicators were above forecasts as well.

The Business Outlook Survey for Summer 2018 released by the Bank of Canada on Friday was optimistic, saying:

Despite some expectations of a moderation in the pace of sales growth, firms’ sales outlooks remain robust, supported by strong foreign and domestic demand, and improvements in some commodity prices.

The report further stated:

In the summer survey, the Business Outlook Survey indicator increased to near-record levels, signalling widespread business optimism.

USD/CAD dropped from 1.3248 to close at 1.3130 — the lowest level in two weeks. EUR/CAD rallied from 1.5329 to 1.5457 intraday but backed off to settle at 1.5336. CAD/JPY jumped from 83.37 to 84.23, also touching the highest in two weeks.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *