Home » BLOG » Canadian dollar jumps to 8-month high on strong GDP report

Canadian dollar jumps to 8-month high on strong GDP report

The loonie strengthened for its fourth day after January's GDP report said the the economy grew 0.6 per cent from a month earlier.

The Canadian dollar rose towards the highest in eight months versus its U.S. counterpart following a report showed the nation’s economy growing at its fastest in three years.

The currency strengthened for a fourth day, its longest streak of gains forever of February, as gross domestic product grew 0.6 percent in January from the month earlier, the biggest increase since July 2013. That exceeded 20 of 21 estimates before the report, with manufacturing leading the development.

Canada’s currency, referred to as loonie for the picture of the aquatic bird on its $1 coin, slumped to its lowest in additional than a decade earlier this year as the price of oil – the nation’s major export – tumbled. A rally in oil in recent weeks has bolstered the currency, lifting it 7.4 per cent since Dec. 31, endorsing the Bank of Canada’s decision to avoid further easing at its meeting this month.

Related

About privatefinancetips

x

Check Also

U.S. job growth slows and profits tumble as a strong dollar and cheap oil undercut earnings

WASHINGTON – U.S. economic growth slowed within the fourth quarter, although not as sharply as ...

The REIT sector’s next challenge: CEO succession and board renewal

Getting there C with new chief executives and groups of new directors for that firms ...

Commodities could be headed for ‘buffalo jump’ as investors rush for the exits, Barclays warns

Commodities including oil and copper are in chance of steep declines as recent advances aren’t ...