Canada’s Dollars Starts Week Bullish on GDP

The Canadian dollar started this week extending a rally started last Friday as quarterly gross domestic product figures in the country surprised forecasts positively, attracting more traders to inject capital in the country as the North American economy rebounds.

After a gross domestic product report showing economic data for the last month of 2009 was published today, the loonie continued to climb and reached the highest level in a week versus its U.S. counterpart as actual figures came above forecasts, spurring demand for the country’s currency in foreign-exchange markets. Canada is unique in their GDP data releases, with publications on a monthly basis, and today’s report featuring December’s economic performance summarized for getting the fourth quarter data in 2009, in which the Canadian economy grew around 5 percent, a much better result compared to most economic regions around the world.

Finally a domestic event changed the loonie’s trends which have been strictly influenced by the global demand for commodities and appeal for stocks in the past few weeks. The Canadian dollar may gain further versus important currencies, including its U.S. counterpart as interest rates aren’t liked to be hiked soon Canada’s southern neighbor.

USD/CAD traded at 1.0426 as of 00:39 GMT from a previous intraday rate of 1.0510.

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