Canadian Dollar Ends Friday Higher vs. Euro Despite Falling GDP
The Canadian dollar rose against the euro and ended the last trading day of this week almost flat versus the US dollar and the Japanese yen even though Canadian economy shrank more than was predicted by experts.
Canadian gross domestic product shrank 0.5 percent in the second quarter of 2013, more than was predicted (0.4 percent). GDP expanded 0.2 percent in the first quarter. The data suggested that it is too early for the Bank of Canada to consider raising interest rates.
Still, the loonie managed to register gains as risk aversion eased after chances for a US attack on Syria decreased. Britain and France refused to join conflict until UN survey confirms that chemical weapons were indeed used by the Middle Eastern country last week.
EUR/CAD slipped from 1.3942 to close at 1.3913. USD/CAD ended Friday little-changed at 1.0527. CAD/JPY was down a little from 93.34 to 93.22.
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Earlier News About the Canadian Dollar:
- Loonie Remains Soft vs. Greenback Ahead of GDP Report (2013-08-30)
- Loonie a Little Lower on Fed Bets, Middle East Jitters (2013-08-27)
- Loonie Erases Losses as Inflation Accelerates (2013-08-23)
- Loonie Weaker After Fed Minutes, Weakest vs. Euro Since 2011 (2013-08-22)
- Canadian Dollar Weak Ahead of Retail Sales Report (2013-08-20)