The Canadian dollar enjoyed a rebound yesterday, as the US dollar bull market took a breather. The loonie strengthened yesterday despite crude oil prices falling. Previously, the currency fell following comments from Bank of Canada Governor Poloz suggesting that future interest rate hikes are less certain in the future.
USD/CAD has given up some of Wednesday's strong gains, is currently trading below 1.2440. After falling earlier in the week, EUR/CAD is back to where it was trading on Monday morning. The currency pair is currently trading above 1.4650. The Canadian dollar has also recently strengthened against the pound, with GBP/CAD below 1.6660.
This is a fairly light week for economic data from Canada. Today, Statistics Canada will announce month-on-month GDP growth for July. These figures will be watched closely considering the Bank of Canada's recent skittishness with regards to future interest rate hikes.