Canada Dollar at Almost 1-Week Low Before Forecast GDP SlowdownAri Altstedter
The Canadian dollar touched its lowest point this week before a report forecast to show the economy contracted in June by the most since 2009 after the U.S. reported yesterday a pick-up in growth.
The currency fluctuated against its U.S. peer before the data, which are projected to show gross domestic product contracted 0.4 percent in June after a 0.2 percent expansion the previous month, according to a Bloomberg survey of 21 economists. The number would bring second-quarter growth to 1.6 percent at an annual rate from 2.5 percent the previous period, a separate survey showed. Economic growth in the U.S., the nation’s biggest trade partner, exceeded projections from April through June.
“If Canada looks like it’s lagging behind, then people will probably think underperformance and hence the Canadian dollar falls further behind,” said Don Mikolich, executive director of foreign-exchange sales at Canadian Imperial Bank of Commerce, by phone from Toronto. “We did go through a rough patch in this past quarter.”
The loonie, as the Canadian dollar is known, was little changed at C$1.0531 per U.S. dollar at 7:47 a.m. in Toronto, after falling as low as C$1.0541, the lowest level this week. One loonie buys 94.95 U.S. cents.