Canadian Dollar Not Celebrating Canada Day
Going into tomorrow’s national holiday, CAD’s performance has been dismal despite the upbeat GDP report this morning (up 0.4% compared to the expected 0.3%). The loonie resisted upward pressure from a weaker USD and rising Oil earlier as well, stubbornly trading lower all day on fears of energy-driven inflation taking a bite out of consumer demand.
USD/CAD is currently up 72 pips to 1.0180, down slightly from today’s high at 1.0212. EUR/CAD is up 67 pips at 1.6032.
Bonds sold off some on the GDP data but trading was slow ahead of tomorrow’s Canada Day holiday. Bond markets closed earlier than usual at 2:00pm and will not re-open until Wednesday morning. The Canadian 10yr yield was up 4bps at 3.737%.
Meanwhile, the S&P/TSX ended the day up 100 points at 14,456. It will be closed tomorrow and reopen on Wednesday at 9:00am.