The report about Canada’s economic growth was mixed and did not provide a clear picture of the nation’s economic health. As a result, the Canadian dollar rose against its US peer, fell versus the euro and was little changed against the Japanese yen.
Canada’s gross domestic product expanded 2.9 percent in the fourth quarter of 2013 from a year ago. The growth was faster than the third quarter’s 2.7 percent. Quarter-on-quarter, the pace of expansion stayed at 0.7 percent. On a monthly basis, GDP contracted 0.5 percent in December from November.
The mixed data did not help the loonie to establish a clear trend. Yet analysts became more optimistic regarding the currency, believing that the Canadian economy should fare a bit better in the future.
USD/CAD declined from 1.1119 to close at 1.1072 today. EUR/CAD was up from 1.5245 to settle at 1.5283, reaching 1.5390 — the highest rate since December 2009. CAD/JPY closed at 91.88, not far from the opening of 91.80
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