The Canadian dollar was higher in a Friday morning snapshot as Statistics Canada reported a second month of unchanged GDP by industry, while its early estimate pointed to a September contraction.
Reuters reported the currency up 0.26% at C$1.3951 per U.S. dollar, or 71.68 U.S. cents, at 8:38 a.m. EDT (12:38 UTC) on Oct. 30. FXStreet later put the U.S. dollar at about C$1.3963 at 11:13 a.m. EDT (15:13 UTC), with West Texas Intermediate crude above $103 a barrel. FXStreet attributed support for the Canadian dollar to oil prices; EconoTimes previously covered the currency as Brent crude topped $110.
Statistics Canada said real GDP by industry was essentially unchanged in August, matching July’s reading. Nine of 20 sectors expanded; manufacturing and construction rose, while utilities and wholesale trade fell. The agency’s advance estimate indicated a 0.1% September decline, while its preliminary estimate showed GDP by industry grew 0.3% in the third quarter.
The Bank of Canada raised its overnight-rate target by 25 basis points to 2.5% on Oct. 28. It said CPI inflation had been around 3% since April and projected it would reach about 3.5% by year-end, citing energy costs and the risk of pressure spreading to other prices. The Bank said fuel was adding to production and transportation expenses, while its surveys suggested businesses expected a larger share of those costs to reach customers over the coming year; officials said another rate increase might be needed but policymakers would proceed carefully.
Statistics Canada is scheduled to publish its official September GDP-by-industry estimate on Nov. 30, and the Bank’s next rate announcement is set for Dec. 9.
