Canadian Financial Close: Slowly rising GDP boosts loonie

By MarketsFarm

WINNIPEG, Oct. 30 (MarketsFarm) – The Canadian dollar was slightly higher on Friday, due to an increase in Canada’s gross domestic product, albeit at a slower pace.

The loonie finished at US$0.7509 or US$=C$1.3318 compared to Thursday’s close of US$0.7491 or US$1=C$1.3349.

Statistics Canada reported today that the country’s GDP grew 1.2 per cent in August, less than half of the pace in July, due to the COVID-19 pandemic. The federal agency forecast an increase in the GDP for September, but at 0.7 per cent.

The rise in the loonie came despite a stronger United States dollar. The U.S. Dollar Index saw the greenback push upward to 94.040 points.

Benchmark crude oil prices were lower on Friday, due to continued market concerns that lockdown measures in Europe and elsewhere will lead to sharply reduced demand. In response, Saudi Arabia and Russia stated they are willing to maintain the production cuts instituted by the OPEC+ Plus alliance at 7.7 million barrels per day going into 2021.

Brent crude oil dipped 19 cents at US$37.46 per barrel. West Texas Intermediate (WTI) crude oil lost 56 cents at US$35.61 per barrel. Western Canadian Select (WCS) crude fell 88 cents at US$25.37 per barrel.

The TSX Composite Index was down 90.06 points to finish at 15,580.64.

Gold rose US$11.25 at US$1,878.83 per ounce.

Canada’s agricultural sector fared as follows:

Buhler Industries dn $ 0.08 at $ 2.25
Linamar Corp. dn $ 1.35 at $ 43.55
Maple Leaf Foods dn $ 0.10 at $ 24.26
Nutrien Ltd. dn $ 0.39 at $ 54.16
Ritchie Bros Auctioneers Inc. up $ 0.11 at $ 80.76
Rocky Mountain Dealerships Inc. up $ 0.35 at $ 5.52
(All figures are in Canadian dollars.)

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