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24 Dec 2013
CAD/USD sheds some of yesterday's gains
FXstreet.com (London) - The Canadian dollar has shed some of yesterday’s gains on light trading. The Loonie climbed against the dollar thanks to figures released from Statistics Canada showing that the country’s economic output expanded by 0.3 percent in October, its fourth straight gain. It has also been given a lift by improved economic expectations from the US, its biggest trading partner.
The robust numbers gave the Canadian dollar some relief from bearish expectations coupled with the high volume of CAD shorts taking profits in thin markets.
The CAD has fallen 0.07 percent, with CAD/USD at USD0.9412. The pair hit a low of USD0.9321 on Friday before steadily recovering to USD0.9440.
Sluggish domestic spending and consumer debt levels have pulled against export gains. However, the recent stronger macro data from Canada, as well as the relative tightening of US monetary policy on improved expectations suggests that Canada is set for a recovery after a weak 2013. This is supported by forecast from the Bank of Canada that predicted in October that growth would accelerate to an annualised 2.3 percent in the fourth quarter before reaching 2.6 percent at the end of 2014.
The robust numbers gave the Canadian dollar some relief from bearish expectations coupled with the high volume of CAD shorts taking profits in thin markets.
The CAD has fallen 0.07 percent, with CAD/USD at USD0.9412. The pair hit a low of USD0.9321 on Friday before steadily recovering to USD0.9440.
Sluggish domestic spending and consumer debt levels have pulled against export gains. However, the recent stronger macro data from Canada, as well as the relative tightening of US monetary policy on improved expectations suggests that Canada is set for a recovery after a weak 2013. This is supported by forecast from the Bank of Canada that predicted in October that growth would accelerate to an annualised 2.3 percent in the fourth quarter before reaching 2.6 percent at the end of 2014.