May 19, 2020

Burger King, Tim Hortons Deal Boosts Loonie

Tim Hortons
Burger King
Joel Cuttiford
1 min
Loonie Tumbles as Unemployment Rate Rises

The Canadian dollar is up today, thanks to the deal between Burger King and Tim Hortons.

The loonie rose 0.5 of a cent to 91.81 cents U.S.

In the past, the loonie has been pushed higher by big corporate deals.  This is because a foreign buyer who acquires a Canadian company will need Canadian currency in order to close the deal, thereby boosting demand for the loonie on financial markets.

Traders also anticipate a strong economic growth update this Friday when Statistics Canada releases the June reading on gross domestic product.  Economists expect that GDP grew by 0.2 percent in June, which would translate into annualized growth of 2.6 percent.

Next Wednesday, the Bank of Canada will release its next decision on interest rates.

On the commodity markets, October crude was up to one cent to US$93.87 a barrel on the New York Stock Exchange.

December copper was down two cents to US$3.20 a pound, while December bullion decreased $2.50 to US$1,282.70 per ounce.

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