Canadian Dollar Retreats as Economy Shows Signs of Growth

The Canadian dollar retreated slightly on Friday morning after reaching six-week highs against its US counterpart on Thursday.

At 9:12 a.m. CDT, the loonie was trading at US$0.7111 or US$1=C$1.4063, down from Thursday's close of US$0.7136 or US$1=C$1.4014.

Canada's economy showed signs of growth in May, with a 0.3% increase in real gross domestic product (GDP), marking the second consecutive monthly rise, according to Statistics Canada.

The data also suggested that the country's GDP growth for the second quarter will be around 0.8%, with an annualized inflation rate of 3.4%. This would be significantly higher than the Bank of Canada's target of 2.5%.