BS: Canada Dollar Gains Before August GDP Data Forecast to Show Rise
The Canadian dollar rose against the majority of its 16 most-traded peers before a report forecast to show the nation’s economy posted its second straight month of growth in August.
The currency strengthened from a seven-week low versus its U.S. counterpart as the Federal Reserve maintained its $85 billion in monthly bond purchases yesterday, while leaving open the possibility for future reductions by saying economic growth persists. The Canadian economy grew 0.1 percent in August compared with the 0.6 percent pace the previous month, according to the median estimate of a Bloomberg survey of 18 economists.
“The risk is possibly that we do get a slightly better number,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce, by phone from London. “With a relatively resilient housing sector, along with some reasonably supportive elements from the resource sector and utilities, I think altogether provide the mix for a cautiously positive monthly reading.”
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The loonie, as the Canadian dollar is known for the image of the waterfowl on the C$1 coin, rose 0.2 percent to C$1.0458 per U.S. dollar at 7:49 a.m. in Toronto. Yesterday it touched C$1.0497 per U.S. dollar, the weakest since Sept. 5. One loonie buys 95.62 U.S. cents.
To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
