The Canadian dollar fell versus the greenback on Thursday as data showed the domestic economy grew at a slower pace in the second quarter than forecast, supporting traders' view the Bank of Canada will leave interest rates on hold next week.
Canada's economy grew at a 2.9 percent annualized rate in the second quarter, the fastest in a year but a tad slower than the 3.0 percent pace seen among analysts polled by Reuters. GDP was unchanged in June, compared with an expected 0.1 percent increase, Statistics Canada said.
"Canada's Q2 GDP has missed the mark marginally, disappointing investors," said Stephen Innes, head of trading in Asia with Oanda in Singapore.
Chances of another interest rate hike from the Bank of Canada as soon as an announcement on Sept. 5 fell to 16 percent from more than 20 percent before the data, the overnight index swaps market showed.
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