Sound Canada GDP data raised Canadian dollar
On Thursday, at an Eastern Time of about 12:25 pm in London, a stronger Canadian GDP data further boosted the Canadian dollar. This happened after the GDP figures revealed the country’s rapidly growing financial system, with the all the highs and lows it experienced just to gain a new 30-year high to get stable at a little below 1.06 against US Dollar.
What also helped in boosting the Canadian Dollar is the market on Thursday was the surprisingly weaker US GDP data which was not much expected by the market. And helped by that, the Canadian dollar rose to a soaring 1.0660 against the US dollar.
Although, now the US dollar has sufficiently recovered from that low following a Chicago manufacturing PMI survey, which came out to be much stronger than what was expected out of it by the market.
The figures released by the Canadian GDP data show an annual growth of 3.8 percent, which was well beyond the anticipations in the market that was expecting for just a reasonable growth of around 3.4 percent.
Such a figure has turned out to be much more than what the Bank of Canada was predicting in their statement when they mentioned an approximate figure of about 3.4 percent on Tuesday. Its April Monetary Policy Report had predicted a figure of about 2.5 percent.Â
Such high figures have further increased the possibility that the Central Bank would likely be raising its rate of interest in the soon, coming future.
At about 3.00 pm as per the Greenwich Mean Time, the US dollar rated at 1.0691 against the Canadian dollar.