Economics
Canadian Dollar Leads Gains as GDP Beats, Commodities Advance
- USD suffers amid lackluster inflation data, Treasury jawboning
- Treasury secretary says weak USD ‘somewhat better’ for trade
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The Canadian dollar was the best performer among major currencies Thursday amid better-than-expected economic growth, gains in gold and crude oil and a shift forward in expectations for the next Bank of Canada rate increase.
While the greenback declined after a weak inflation inflation report and jawboning from Treasury Secretary Steven Mnuchin, the loonie climbed more than 1 percent versus its American counterpart and advanced against all of its G-10 peers. Traders focused on stronger-than-expected Canada second-quarter economic growth and priced in a greater chance that the nation’s central bank will hike rates at its meeting next week.