Canadian dollar steadies near 12-week low as GDP data meets expectations
SPY•The Canadian dollar was nearly unchanged at 1.4175 per U.S. dollar after touching a 12-week low, as July GDP was unchanged and preliminary data showed 0.2% growth in August.
1. Currency and GDP
The Canadian dollar steadied near a 12-week low against the U.S. dollar on Tuesday, trading nearly unchanged at 1.4175 per U.S. dollar, or 70.55 U.S. cents. It had touched 1.4201, its weakest intraday level since July 8. Canada's GDP was unchanged in July from June, matching expectations, while a preliminary estimate showed GDP rising 0.2% in August.
2. Growth and bond yields
The Bank of Canada has forecast annualized third-quarter growth of 1.5%. BMO Capital Markets strategist Benjamin Reitzes said the report put third-quarter growth in line with or slightly above the central bank's forecast. Canadian government bond yields were mixed: the two-year yield dipped about half a basis point to 3.374%, while the 10-year yield rose 3.2 basis points to 3.999%, near its highest level in three years.
