Canadian dollar is lower against its major counterparts today, dropping as economic expectations weigh on the loonie. Between GDP data to be released tomorrow, and a Bank of Canada announcement next week, there aren’t high hopes for loonie performance.
Tomorrow, Statistics Canada is expected to share data about economic performance in December 2012. The report is expected to show a lower GDP, indicating contraction. Reports are expected to show December GDP shrinking by 0.2 per cent. If this is, in fact, the case, then fourth quarter growth would be 0.6 per cent.
Forex traders are also looking forward to the upcoming Bank of Canada decision on March 6. There is some speculation that the BoC will finally decide to lower the interest rate in order help spur economic growth.
After holding steady for so long, there are now worries that the Canadian economy is struggling. It’s also not helping that, right now, oil prices are struggling a bit, too. With oil as Canada’s major export, lackluster oil prices tend to weigh on the loonie.
At 13:35 GMT USD/CAD is up to 1.0259 from the open at 1.0232. EUR/CAD is also higher, rising to 1.3467 from the open at 1.3440. GBP/CAD is higher at 1.5588, up from the open at 1.5506.
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