On December 24, 2024, the Canadian Dollar (CAD) saw an increase, trading at 69.51 cents US, up from 69.47 cents US, as stock markets rallied ahead of the Christmas holiday. The S&P/TSX composite index in Canada rose by 97.84 points, closing at 24,846.82. In the U.S., stock markets also experienced significant gains, with the Dow Jones increasing by 390.08 points to reach 43,297.03, the S&P 500 rising by 65.97 points to 6,040.04, and the Nasdaq climbing by 266.24 points to 20,031.13. This market rally is largely attributed to year-end portfolio adjustments rather than a fundamental shift in market sentiment, according to Dustin Reid, chief fixed income strategist at Mackenzie Investments.
Despite the positive market performance, Statistics Canada reported a 0.1% drop in real GDP for November, which may indicate a potential need for further rate cuts by the Bank of Canada. The CAD's resilience amidst mixed economic signals reflects ongoing adjustments in the financial landscape as the year comes to a close. Additionally, February crude oil prices rose to US$70.10 per barrel, contributing to the overall economic context. [ff186ffa]