Canadian Dollar Reverses Losses After GDP Beats Expectations

The Canadian dollar rallied today, reversing its earlier losses. The currency got a boost from Canada’s solid economic growth.
Statistics Canada reported that gross domestic product rose 0.5% in May after increasing 0.1% in April. Analysts had predicted a smaller increase by 0.3%. In June, both the Industrial Product Price Index and the Raw Materials Price Index also rose 0.5%, though in this case the rate of growth significantly slowed from the previous month.
Earlier, the loonie slumped on reports that Canada was rejected from the US-Mexico trade talks. That hurt optimism for success of US, Canada, and Mexico negotiations about preserving the North American Free Trade Agreement.
USD/CAD dropped from 1.3033 to 1.2997 as of 19:01 GMT today after rallying to 1.3097 intraday. EUR/CAD was up from 1.5254 to 1.5325 before backing off to 1.5200. CAD/JPY jumped from 85.15 to 86.02 following the drop to the intraday low of 84.77.

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