Loonie Gets Boost from Better than Expected Economic Data

Canadian dollar is getting a little bit of a boost today, thanks to the latest economic news. Loonie is trading slightly higher against the US dollar, and finding success against some of the other major currencies as well.

November’s GDP reading from Statistics Canada showed an increase of 0.3 per cent, beating the forecast 0.2 per cent. Looking at the year over year gain, it appears that Canada’s economy is headed for an improvement of 1.3 per cent. The news was a sharp contrast with the fourth quarter GDP reports from the United States, which showed a decrease of 0.1 per cent.

As a result of this difference, loonie received some support in the currency market. Canada’s solid economic performance is also faring well when compared with the eurozone’s attempts to move out of recession. While Germany is helping in that area, there are sill plenty of other parts of the eurozone that remain recession-bound.

For now, the loonie appears to be doing well enough. While there is still the potential for problems in Canada — especially related to what many think is a housing bubble — Canadian dollar is holding its own.

At 15:53 GMT USD/CAD is down to 0.9991 from the open at 1.0014. EUR/CAD is down to 1.3579 from the open at 1.3587. GBP/CAD is up to 1.5839 from the open at 1.5823.

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