C$ hits one-month low as GDP data boosts greenback

Fawad Maqsood July 26, 2019

TORONTO: The Canadian dollar weakened to a one-month low against its US counterpart on Friday after data showing stronger-than-expected growth in the US economy that was supportive of the greenback.

The US dollar

strengthened against a basket of major currencies after the data, which could support the view that an expected interest rate cut by the Federal Reserve at the end of the month would not be the start of major easing by the central bank.

At 9:50 a.m. (1350 GMT), the Canadian dollar was trading 0.2% lower at 1.3186 to the greenback, or 75.84 US cents.The currency tocuhed its lowest intraday level since June 26 at 1.3194.

The price of oil, one of Canada’s major exports, rose and was on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains. US crude oil futures

were up 0.2% to $56.15 a barrel.

Canadian government bond prices were mixed across a flatter yield curve, with the two-year down 0.5 Canadian cent to yield 1.453% and the 10-year rising 9 Canadian cents to yield 1.457%.

Copyright Reuters, 2019

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