The Canadian dollar dropped versus its US counterpart as the economy of the US continued to show a robust economic growth. The loonie gained against the euro as the European Union summit hasn’t eased the concern about Europe’s debt problem.
The US gross domestic product increased at the annual rate of 3.1 percent in the fourth quarter of the last year, according to the final estimate released by the Bureau of Economic Analysis. In the third quarter of 2010, the US economy expanded 2.6 percent. Federal Reserve Bank of Philadelphia President Charles Plosser spoke today about the necessity to increase the interest rate as the economy strengthens.
The summit of the EU leaders, that ended today, shattered optimism caused by the previous meeting and weakened the euro against the loonie. At present, the euro gradually regains its strength.
USD/CAD advanced from 0.9763 to 0.9820 today as of 20:09 GMT after it earlier dropped to the intraday low of 0.9740. EUR/CAD fell from 1.3835 to 1.3825, following the previous decline to 1.3766.
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