News Column

Canadian Dollar Slides As Canada's GDP Grew Less-than-forecast

June 30, 2014

CANBERA (Alliance News) - The Canadian dollar slipped against its most major counterparts in European deals on Monday, after a report showed that the nation's economy rose less-than-expected in April.

The latest data from Statistics Canada showed that Canadian economy grew 0.1% in April, the same pace as in March. This is lower than the 0.2% growth expected by the economists.

On year, the GDP rose by 2.1%, down from forecasts for a 2.3% rise. However, the reading came in flat with last month.

Slower economic growth raised hopes that the Bank of Canada governor Stephen Poloz will keep interest rate unchanged at 1.00% at the bank's rate setting meeting this month, to aid nation's recovery.

The loonie continued its decline against the euro, hitting a 4-day low of 1.4599. At last week's close, the pair was worth 1.4549. On the downside, 1.47 is seen as next support level for the loonie.

The loonie declined to a session's low of 1.0696 against the greenback, compared to 1.0661 hit late New York Friday. The next possible downside target for the loonie may be eyed at the 1.08 mark.

The loonie, which ended Friday's deals at 95.04 against the yen, slipped to 94.76. Further weakness may take the loonie to a support around the 94.00 zone.

Meanwhile, the loonie remained higher against the aussie and was trading at 1.0038, after climbing to near a 5-week high of 1.0027 shortly before the data. Extension of uptrend may see the loonie seeking resistance at the 0.995 region.

Looking ahead, the US pending home sales data for May is due shortly.

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Source: Alliance News

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