News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.28%, while traders in France 40 are at opposite extremes with 78.36%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/37chG31FJd
  • Heads Up:🇳🇴 Norges Bank Interest Rate Decision due at 08:00 GMT (15min) Expected: 0% Previous: 0% https://www.dailyfx.com/economic-calendar#2021-05-06
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/lVIgesi1on
  • Some decent gains in the alt-coin space over the last 24 hours...#tel #btg #xem #eos #cryptocurrencies @DailyFX Prices via @CoinMarketCap https://t.co/xB5nlNGiyG
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Silver: 1.04% Gold: 0.40% Oil - US Crude: 0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/9ZnO125a1I
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.16% 🇨🇭CHF: 0.11% 🇨🇦CAD: 0.10% 🇳🇿NZD: 0.07% 🇬🇧GBP: -0.01% 🇯🇵JPY: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/9jy6zaHhWN
  • Heads Up:🇸🇪 Monetary Policy Meeting Minutes due at 07:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-06
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: France 40: 0.21% FTSE 100: 0.16% Wall Street: 0.13% US 500: 0.10% Germany 30: 0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/gL7lPYlCFa
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/Fxy8ulPTvD
  • (ASEAN Tech) US Dollar Analysis, Downside Bias May Hold: USD/SGD, USD/THB, USD/IDR, USD/PHP #USD $USDSGD $USDTHB $USDIDR $USDPHP #ASEAN https://www.dailyfx.com/forex/technical/article/special_report/2021/04/30/US-Dollar-Analysis-Road-Ahead-Bumpy-USDSGD-USDTHB-USDIDR-USDPHP.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/aWlBsjC5sR
Marked Slowdown in Canada GDP to Fuel USD/CAD Recovery

Marked Slowdown in Canada GDP to Fuel USD/CAD Recovery

David Song, Strategist

- Canada 3Q GDP to Slow to Annualized 1.6%- Slowest Pace of Growth Since 2Q 2016.

- Canada Employment to Increase Another 10.0K in November.

Trading the News: Canada Gross Domestic Product (GDP)

Canada GDP

Canada’s 3Q Gross Domestic Product (GDP) report may fuel the near-term recovery in USD/CAD as the growth rate is expected to slow to an annualized 1.6% after expanding 4.5% during the three-months through June.

Even though Canada Employment is anticipated to add another 10.0K jobs in November, a marked slowdown in the growth rate may impact the near-term outlook for the dollar-loonie exchange rate as it encourages the Bank of Canada (BoC) to endorse a wait-and-see approach for the foreseeable future. After delivering two rate-hikes in 2017, Governor Stephen Poloz and Co. appear to be in no rush to implement higher borrowing-costs as ‘growth is expected to moderate to a more sustainable pace in the second half of 2017 and remain close to potential over the next two years.’

In turn, the BoC may stick to the sidelines at the next policy meeting on December 6, but the central bank may continue to alter the monetary policy outlook in 2018 as ‘less monetary policy stimulus will likely be required over time.’

Impact that Canada GDP report has had on USD/CAD during the previous quarter

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

2Q

2017

08/31/2017 12:30:00 GMT

3.7%

4.5%

-83

-169

2Q 2017 Canada Gross Domestic Product (GDP)

USD/CAD 15-Minute Chart

USD/CAD Chart

Canada’s 2Q Gross Domestic Product (GDP) report showed the economy expanding an annualized 4.5% to mark the fastest pace of growth since 2011, with the above-forecast print led by a 4.6% rise in household consumption. Signs of stronger-than-expected growth may encourage the Bank of Canada (BoC) to further normalize monetary as the central bank lifts the benchmark interest rate off of the record-low in 2017, and Governor Stephen Poloz and Co. may continue to change their tune over the coming months amid the positive developments coming out of the region.

The Canadian dollar rallied against its U.S. counterpart following the GDP report, with USD/CAD slipping below 1.2500 handle to end the day at 1.2481. Looking to trade Canada GDP but don’t have a strategy? Download & review the DailyFX Advanced Guide for Trading the News to learn our 8 step strategy.

USD/CAD Daily Chart

USD/CAD Daily Chart
  • USD/CAD remains at risk for a larger correction as an inverse head-and-shoulders formation continues to unfold, with the pair at risk of extending the advance from earlier this week amid the failed attempt to test the November-low (1.2670).
  • Fresh series of higher highs & lows keeps the topside targets on the radar especially as the Relative Strength Index (RSI) flashes a bullish trigger and clears the downward trend from earlier this month.
  • A break of the monthly-high (1.2917) opens up the next hurdle around 1.2980 (61.8% retracement) to 1.3030 (50% expansion), which sits just above the 200-Day SMA (1.2969), with the next region of interest coming in around 1.3130 (61.8% retracement).
  • Keep in mind, failure to break the monthly opening range may foster choppy price action going into December as market participation tends to thin ahead of the weekend.

Want more insight? Sign up & join DailyFX Currency Analyst David Song LIVEto cover Canada’s GDP & Employment report!

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES