Canadian Dollar Pushes Higher, Ignoring Domestic Economic Data

Some 20 and 50 CAD billsThe Canadian dollar rallied today, touching the highest level since September against its US counterpart, even while domestic macroeconomic data was not helpful to Canada’s currency.

Canadian gross domestic product rose 0.2% in April, exactly as forecasters predicted. It was a slower growth than March’s 0.5%.

The Industrial Product Price Index fell 0.2% in May. The Raw Materials Price Index declined 1.8%. Both indicators missed forecasts, and both suffered from the low prices for crude oil.

Yet crude has started a rebound last week, and extended it to the present week. The bounce provided strong support to the Canadian dollar.

Signs that the Bank of Canada is considering stimulus exit were helping the currency as well.

USD/CAD dropped from 1.3001 to 1.2968 as of 20:37 GMT today, trading near the lowest level since September 9. EUR/CAD declined from 1.4873 to 1.4809. CAD/JPY advanced from 86.22 to 86.68, and it reached the high of 86.85 intraday — the level not seen since February 12.

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