Canadian Dollar futures recovered losses on strong GDP.
September Canadian Dollar futures recovered midday losses to trade down slightly by 0.22%, staying on track for a weekly gain of roughly 0.5%. The currency found support following stronger-than-expected economic data, as Canada's May GDP grew 0.3%—beating the 0.1% forecast—driven by 1% growth in mining, quarrying, and oil and gas extraction. Second-quarter GDP growth is currently estimated at an annualized pace of 3.4%, well above the Bank of Canada's 2.5% projection. While robust economic performance reduces the likelihood of near-term rate cuts by the Bank of Canada, a 125 to 150 basis point yield advantage in U.S. interest rates continues to keep pressure on the currency.
September Canadian Dollar futures recovered midday losses to trade down slightly by 0.22%, staying on track for a weekly gain of roughly 0.5%.
The currency found support following stronger-than-expected economic data, as Canada's May GDP grew 0.3%—beating the 0.1% forecast—driven by 1% growth in mining, quarrying, and oil and gas extraction.
Second-quarter GDP growth is currently estimated at an annualized pace of 3.4%, well above the Bank of Canada's 2.5% projection.
While robust economic performance reduces the likelihood of near-term rate cuts by the Bank of Canada, a 125 to 150 basis point yield advantage in U.S. interest rates continues to keep pressure on the currency.