The US dollar has plunged to a multimonth bottom vs the Canadian currency today driven by good economic data in Canada and the USA. Investors remain careful on coming decision on interest rate issue by the Federal Reserve.
As a result, the USD-CAD pair fell to 1.2265 in the second half of the day.
According to the reports, Canada's GDP posted a 0.4% upturn in November as it was expected. For comparison, October was finished with zero growth. Producer price index dropped 0.9% in December (forecast – 2.2% down).
As for the USA, ADP's data showed that the number of new jobs in the private sector rose by 234,000 (forecast – 186,000) in January.
However, the American currency is still depressed on coming monetary policy statement by the Federal Reserve. Investors expect to see more notes about the interest rate increase in 2018.
The US dollar went down after Donald Trump's State of the Union message. The market experts were mainly optimistic about his speech on new page in American history with prosperity, recovery, and cooperation. Nevertheless, US President also highlighted the need for leaving large-scale multilateral agreements and to end unfair trade relations with other countries.