The U.S. dollar was stronger against other currencies on Friday after growth in the U.S. economy slowed less than expected, though trade tensions weighed on business. Second-quarter gross domestic product(GDP) increased at an annual rate of 2.1% from 3.1% in the first quarter, compared to estimates for 1.8% growth. Consumer spending rose 4.3%, while exports dropped 5.2% and imports inched up just 0.1%, indicating trade tensions between the U.S. and China are weighing on expansion. The numbers give more reason for the Federal Reserve to be less aggressive on easing monetary policy, with investor expectations for rates falling 50 basis points this year cut to 19.4% and odds for three cuts dipping slightly.
Oil prices nudged up early on Friday, supported by weekly U.S. reports of inventory draws and simmering tensions in the Middle East, while worsening outlooks on the global economy capped price gains. At 05:26 a.m. EDT on Friday, West Texas was up 0.46 percent at $56.28 and Brent crude was trading up 0.30 percent at $63.45, with prices on course to post a weekly gain this trading week. The Iran-West tensions in the Middle East and a call from none other than the world’s top crude oil exporter, Saudi Arabia, on countries buying oil to secure the free navigation of tankers in the Strait of Hormuz lent support to prices.
The Canadian dollar is weaker to the USD based on the GDP data and will likely remain at these levels the rest of the day.
Currently Close Range
USDCAD 1.3190 1.3165 1.3156-1.3199
EURCAD 1.4675 1.4675 1.4659-1.4694
GBPCAD 1.6338 1.6399 1.6326-1.6407