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03.12.202516:16:27UTC+00Canadian Dollar Climbs to 1-Month High

The Canadian dollar appreciated towards 1.39 per US dollar, reaching a one-month high. This strengthening was driven by a weaker US currency and the continued robustness of the Canadian economy. The ADP report showed an unexpected decline in private payrolls, increasing the likelihood of a near-certain cut by the Fed. In contrast, Canada's third-quarter GDP grew by an impressive annualized rate of 2.6%, suggesting that the Bank of Canada might pause or slow down its path of monetary easing. Additionally, the increase in crude oil prices and rising copper supported Canada's terms of trade, reinforcing the currency's upward movement. Although softer manufacturing PMI figures present a challenge, they do not outweigh the overall support from diminishing expectations of US policy tightening and stronger Canadian economic activity.

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