Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

DailyFX Home / Market Alerts

Canadian GDP Mostly In Line With Expectations As US GDP Surprises To Upside

By Kevin Jin
31 July 2013 12:53 GMT

THE TAKEAWAY: CAD Gross Domestic Product (YoY) (MAY) > +1.6% versus +1.6% expected, from +1.4% > USDCAD BULLISH

Canadian GDP figures for May came largely in line with Bloomberg News survey expectations. The y/y number came in at +1.6% versus +1.6% expected. The m/m figure came in at +0.2%, slightly below the +0.3% that Bloomberg News survey analysts expected. Canada releases GDP every month and the +1.6% change is an increase over April’s +1.4%.

The slightly bearish Canadian data is in contrast to the strong US GDP data which was released at the same time. US Annualized GDP (QoQ) for 2Q gained +1.7%, above the Bloomberg News survey consensus of +1.0%. While there was a strong downward revision in 1Q GDP from +1.8% to +1.1%, the USDCAD still reacted bullishly.

Recall the strong connection between the US and Canadian economies. The US accounts for roughly 70% of Canadian exports.

USDCAD 1-minute Chart: July 31, 2013

Canadian_GDP_Mostly_In_Line_With_Expectations_As_US_GDP_Surprises_To_Upside_body_Picture_1.png, Canadian GDP Mostly In Line With Expectations As US GDP Surprises To Upside

Charts Created using Marketscopeprepared by Kevin Jin

The USDCAD is higher by roughly +10 pips following the combination of Canadian and US GDP. The initial reaction was +30 pips but the pair quickly began to retrace.

--- Written by Kevin Jin, DailyFX Research

Are you new to trading? Watch this.

provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from

31 July 2013 12:53 GMT