The Canadian dollar rose against its US peer and the Japanese yen today despite negative macroeconomic reports from Canada. The currency was down versus the euro.
Canada’s current account deficit decreased C$0.5 billion to C$15.5 billion in the third quarter of 2013 on a seasonally adjusted basis, but was still above forecast C$14.3 billion. The Industrial Product Price Index declined 0.3 percent in October, in line with expectations. The Raw Materials Price Index fell by 2.3 percent, more than was predicted (2.1 percent).
All reports were poor and led to concerns about sustainability of Canada’s growth. Economists predict that tomorrow’s report will show that the pace of Canada’s economic expansion slowed from 0.3 percent in August to 0.1 percent in September.
USD/CAD was down from 1.0593 to 1.0582 as of 17:52 GMT today following the decline to 1.0569. EUR/CAD ticked up from 1.4384 to 1.4393. CAD/JPY went up from 96.40 to 96.57.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.