- The Canadian dollar rose 0.7 % against Greenback on Friday.
- GDP growth numbers have sent the optimistic Canadian GDP that LONIE traders are scrambling for the purchase button.
- CAD has returned in the sight of its highest level for six months.
The Canadian dollar (CAD) found some spaces on the upper side on Friday, stimulating higher by printing better than expected in Canadian local product growth numbers (GDP) for the first quarter. Continuous commercial turmoil from the Trump administration has maintained the US dollar (USD) near its lowest level in several years, giving LONIE an opportunity to get new land.
The Canadian economy has grown by 2.2 % through the first quarter, which led to expectations in the medium market properly and sent Loonie to its last highest level against Greenback. However, not everything is sunny on the Canadian Economic Front: spending on consumers in general slowed during the first quarter, as the recession was hidden behind an increase in both imports and exports, as companies spent most of the first quarter of hasty products outside the door, or storing goods and products before the start of the Trump administration tariff.
Digest Market Mark: The Canadian dollar is higher steps where GDP won the garbage
- Canadian GDP Q1 increased by 2.2 %, and ease in medium -printing market predictions by 1.7 %.
- Despite the rhythm of the main address, Canadian GDP characters do a weak work in overcoming the increasing cracks:
- Canadian GDP from the previous quarter is sharply reviewed to 2.1 % of 2.6 %, and more reviews must be expected to move forward;
- The actual spending of consumption decreased in the first quarter, but it is still hidden behind a significant increase in exports and imports with companies announcing the US tariff in April.
- Canadian recruitment numbers reveal a medium unemployment gap, especially among the younger Canadians.
- The climb of the Canadian semester gross domestic product led to the opposite bets from another price of Canada (BOC).
- Pricing markets are now 80 % of the average possibility when calling the following rate of BOC.
Canadian dollar price expectations
The pressure of the new bids in Canadian dollars was reinforced against the US dollar on Friday, as it sent US/CAD dollars on hand for six months, south of the handle of 1.3700. The price of the price continues to see the daily candles circulates towards the low side, as it maintains the continuous declining direction with a request for a declining path.
Daily Plan USD/CAD
Questions and answers in Canadian dollars
The main factors that lead the Canadian dollar (CAD) are the level of interest rates set by the Bank of Canada (BOC), the price of oil, the largest export in Canada, the health of its economy, inflation and commercial balance, which is the difference between the value of exports in Canada in exchange for its imports. Other factors include market morale-if investors are eating more risky assets (risk) or searching for safe materials (risk)-with positive CAD risks. As its largest commercial partner, the health of the American economy is also a major factor that affects the Canadian dollar.
Canada Bank (BOC) has a major impact on the Canadian dollar by determining the level of interest rates that banks can persuade each other. This affects the level of interest rates for everyone. The main goal of BOC is to keep inflation by 1-3 % by setting interest rates up or down. Relatively higher interest rates tend to be positive for CAD. Canada Bank can also use quantitative dilution and tighten it to influence credit conditions, with previous CAD negative and the other positive CAD.
The price of oil is a major factor that affects the value of the Canadian dollar. Petroleum is the largest export in Canada, so the price of oil tends to an immediate effect on the CAD value. In general, if the price of oil rises, the CAD rises, with the increased total demand for the currency. The opposite is the case if the price of oil decreases. The high oil prices also tend to increase the possibility of a positive commercial balance, which also supports CAD.
While inflation was always believed to be a negative factor of the currency because it reduces the value of money, the opposite was already the case in the modern era with the relaxation of capitalist controls across the border. Top inflation tends to lead the central banks to raise interest rates that attract more capital flows from global investors looking for a profitable place to keep their money. This increases the demand for the local currency, which in the case of Canada is the Canadian dollar.
Victory of macroeconomic data evaluates the health of the economy and can have an impact on the Canadian dollar. Indicators such as GDP, manufacturing, PMIS, employment services, and consumer morale surveys can affect CAD direction. The strong economy is useful for the Canadian dollar. Not only attracts more foreign investments, but it may encourage Canada Bank to set interest rates, which leads to a stronger currency. If economic data is weak, CAD is likely to fall.
