The Canadian dollar slowly stole a chance to post a slight gain in today’s trading session as investors await the release of Canada’s Gross Domestic Product (GDP) data on Tuesday.
Nevertheless, Canadian economic growth in December is expected to show a slower reading than before, with an expansion of 0.3% from 0.8%.
The Loonie, had previously been frustrated by the decision of a policy meeting of the Central Bank of Canada (BOC) which chose to keep its interest rates unchanged despite its inflation at a 30 -year high.
However, the central bank has said it is concerned about the current high inflation rate and signaled about an interest rate hike in the future.
However, the reaction received by the loonie dollar was not as strong as the US dollar which had a big impact on the currency market. This is because, the Federal Reserve (Fed) also gave an indication that interest rates may be raised in March.
This caused the loonie dollar to give way and depreciate to a four -week low against the greenback. At the time of writing, the Canadian dollar is trading hovering around the price of 1.2730.
Being the focus of investors now is the reading of Canadian GDP and jobs data which will be released on Tuesday and Friday respectively.
