Canadian dollar weakens to 1.42 per US dollar as growth stalls

  • Canadian dollar weakened to around 1.42 per US dollar in September.
  • Real GDP increased 0.2% in August, after remaining essentially unchanged in July.
  • Bank of Canada rate-hold expectations strengthened as a US import ban took effect.

The Canadian dollar weakened slightly to around 1.42 per US dollar in September, its lowest level in about 12 weeks, as stalled domestic growth and a stronger US dollar pressured the loonie. Advance estimates showed real GDP rose 0.2% in August, supported by mining and quarrying and retail trade, while oil and gas extraction declined. GDP was essentially unchanged in July, ending a three-month growth streak and pointing to a weaker start to the third quarter. The data matched expectations and reinforced forecasts that the Bank of Canada will hold interest rates. A US ban on various Canadian goods imports also took effect, while markets increased bets on further Federal Reserve rate increases, strengthening the US dollar against major currencies and widening the expected US-Canada interest-rate differential.

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Canadian dollar weakens to 1.42 per US dollar as growth stalls - CoinPost Terminal