# Canadian Dollar Strengthens Despite Looming Recession; Loonie to Post January Gain

> The Canadian dollar gained for January after Statistics Canada reported fourth-quarter annualized GDP likely rose 1.6%. Monthly GDP grew 0.1% in November and was flat in December. Gains in the public sector and transport offset contractions in construction and retail.

- Date: 2023-01-31 · published 2023-01-31T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/38037-canadian-dollar-strengthens-despite-looming-recession-loonie-to-post-january
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Economists expect the Bank of Canada's rate hikes to weigh on activity and bring a mild recession, which would reduce domestic demand. The currency gain reflects a weaker US dollar more than Canadian strength, so the direct effect on feed prices is modest.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- fxdailyreport.com: https://fxdailyreport.com/canadian-dollar-strengthens-despite-looming-recession-loonie-to-post-january-gain/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.