Canadian Dollar Remains Under Pressure Despite Rising GDP

The Canadian dollar ended today’s session with losses even though Canada’s economy demonstrated growth in September following the previous month’s decline. It looks like the currency remains under pressure from yesterday’s OPEC announcement.

Canada’s gross domestic product expanded 0.4 percent in September on a monthly basis following the 0.1 percent decline in August. GDP grew 0.7 percent in the third quarter.

Other economic indicators were not as good. The Industrial Product Price Index declined 0.5 percent in October, mainly due to falling prices for energy and petroleum products. The Raw Materials Price Index tumbled 4.3 percent last month, driven for the most part by lower prices for crude energy products.

The Organization of Petroleum Exporting Countries refrained at yesterday’s meeting from cutting output. This decision drove prices for crude oil and oil-related currencies down.

USD/CAD advanced from 1.1330 to settle at 1.1437. EUR/CAD climbed from 1.4124 to 1.4227. CAD/JPY rallied from 103.85 to 104.28 intraday but fell later to close at 103.73.

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