Canadian Dollar Falls Before GDP Forecast for Slow Growth
The Canadian Dollar fell against its U.S. counterpart before a report projected to show growth in the Canadian economy picked up slightly in November.
The currency declined against the majority of its most- traded peers after a report showed German retail sales fell more than economists predicted last month, damping demand for the 17- nation euro. Canada’s gross domestic product is forecast to grow by 0.2 percent in November, up from 0.1 percent the month before, according to a survey of 24 economists by Bloomberg.
“We’re waiting for GDP and Canadian data, but also there is a feeling of less risk appetite in the global economy,” said Jane Foley, senior currency strategist at Rabobank International by phone from London. “I think we’d have to see some properly weak economic data to really chase dollar/Canada significantly higher from these sorts of levels. So the poorer risk appetite weighs against Canada, but at the same time I think if we do see a decent GDP report this afternoon we could see some buyers stepping in for the Canadian dollar.”
The loonie, as the Canadian currency is known for the image of aquatic bird on the C$1 coin, rose 0.1 percent to C$1.0024 per U.S. dollar at 7:45 a.m. in Toronto. One loonie is worth 99.77 cents U.S.
Retail sales in Germany, Europe’s largest economy, adjusted for inflation and seasonal swings, dropped 1.7 percent from November, when they rose a revised 0.6 percent, Germany’s Federal Statistics Office in Wiesbaden said today.
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