The Canadian dollar rose today after the reports showed that the economies of Canada and the US expanded, boosting the demand for the
Canada’s gross domestic product increased by 0.3% percent in August, following the 0.1% decline in July. The actual reading matched the forecast value. The US GDP increased at the annual rate of 2.0 percent in the third quarter of 2010, according to the “advance” estimate released by the Bureau of Economic Analysis, compared to the growth by 1.7 percent in the second quarter. The analysts expected advance by 2.1 percent.
The recent weakness of the Canadian currency was caused by the negative outlook for Canada’s and the US economies. The US provided the good economic reports this week, increasing the confidence in its economic strength. Canada also gave the reason for the optimism, supporting its currency.
USD/CAD closed at 1.0199 after opening at 1.0206. The currency pair fluctuated, falling as low as 1.0168 and rising as high as 1.0247. EUR/CAD went down from 1.4222 to 1.4196, following the decline to 1.4123.
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