Canada’s November GDP Print Beats Expectations

The Canadian dollar was little changed against its U.S. counterpart after a report showed the world’s 11-largest economy grew faster than forecast in November on gains in manufacturing, mining and energy.

The currency, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, fluctuated after Canada’s gross domestic product expanded 0.3 percent, the fastest pace in seven months, Statistics Canada said today in Ottawa. The median forecast in a Bloomberg economist survey was for a 0.2 percent expansion. It dropped earlier after a report showed German retail sales fell more than economists predicted last month.

“Canadian numbers had a small positive surprise,” said Shaun Osborne, chief currency strategist at Toronto-Dominion Bank, by phone from Toronto. “I think that keeps the GDP tracking more or less in line with something where the bank is and where we are. We may have seen all the reaction we’re likely to see on the Canadian dollar for the moment.”

The loonie was little changed at C$1.0015 per U.S. dollar at 8:48 a.m. in Toronto. One Canadian dollar buys 99.85 U.S. cents.

Bloomberg

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