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.

Free Trading Guides
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
Oil - US Crude
More View more
Real Time News
  • Do think your #tradingstyle is of a #FOMO trader? How can you trade that to #JOMO? Find out: https://t.co/FyO2gM0WVi https://t.co/JKgCD09N1R
  • The $USD may be preparing to stage a reversal against the Singapore Dollar as USD/SGD trades within a Falling Wedge. This is as the USD/IDR downtrend remains intact. Get your market update from @ddubrovskyFX here: https://t.co/7fzeWrnlc1 https://t.co/eiXsZjgJZy
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/hPDcXEoed3
  • US Dollar Outlook: $USD Price Volatility & Implied Trading Ranges for Next Week - via @DailyFX Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/special_reports/2019/11/15/us-dollar-outlook-usd-price-volatility-implied-trading-ranges.html https://t.co/er8y1YZVpg
  • $USDJPY has pierced chart support, signaling Yen gains ahead. If that portends a broader anti-risk shift in market sentiment, a breakdown in Japanese stocks may follow. Get your market update from @IlyaSpivak here:https://t.co/sgfv4USOGR https://t.co/rZL6gWsknf
  • RT @economics: Oval Office scuffles, tariff threats, and diminished expectations: An inside look at how Trump’s trade war went from method…
  • We still don't know if there are auto tariffs coming from the White House. The deadline for a decision was Thursday. Crickets
  • $EURUSD Daily Pivot Points: S3: 1.0936 S2: 1.0974 S1: 1.0998 R1: 1.1037 R2: 1.1052 R3: 1.109 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The $CAD continues to take a hit against the US Dollar after USD/CAD very nearly experienced a major long-term support-break at the end of October. Get your USD/CAD market update from @PaulRobinsonFX here:https://t.co/qeWFmoLwKt https://t.co/G0o4uIV2k7
  • US Yield Curves Update: 2Yr/5Yr: 3.8 2Yr/10Yr: 22.2 2Yr/30Yr: 69.5 5Yr/10Yr: 18.6
Canadian Economy Grows for Fifth Time in Six Months

Canadian Economy Grows for Fifth Time in Six Months

2011-05-30 13:15:00
Christopher Vecchio, CFA, Sr. Currency Strategist

The Canadian economy grew for the fifth times in six months, data released today by Statistics Canada showed. The aggregate growth figure expanded at a 3.9 percent annualized rate in the first quarter, following a 3.1 percent expansion in the fourth quarter of 2010. According to a Bloomberg News survey, the median forecast called for 4.0 percent growth in the first quarter of 2011. The economy grew by 0.3 percent in March, up from a 0.1 percent contraction in February, on a month-over-month basis. Overall, GDP was up 2.8 percent on a year-over-year basis, slightly worse than the 3.0 percent figure from February.

While the data comes in softer than anticipated, it still remains stronger than growth figures released by Canada’s largest trading partner, the United States, which grew by a meager 1.8 percent in the first quarter. The differential in growth rates and growth prospects has helped the Loonie against its American counterpart, as the USD/CAD pair fell by 2.82 percent in the first quarter of 2011.

Canadian GDP (YoY): May 2007 to Present

053011_Canadian_GDP_Up_3.9_Percent_body_Picture_7.png, Canadian Economy Grows for Fifth Time in Six Months

Courtesy: Bloomberg

The stronger Loonie could have adverse effects on the overall growth figure in the following quarters, however, as evidenced by the current account figure from the first quarter that was also released today. While the current account balance improved significantly from its last reading, improving to -$8.9 billion from -$10.3 billion, the figure missed the forecast of -$7.2 billion due to the strong domestic currency, which suppressed net exports.

Should growth cool after the strong first quarter reading, pressure will likely be alleviated on the Bank of Canada to raise rates, which have been maintained at 1.00 percent since September 2010. Indeed, the central bank’s forecast shows an expectation of growth to drop to 2.0 percent this quarter.

Following the release of the news, the Loonie lost ground against its American counterpart, with the USD/CAD pair’s exchange rate rising from as low as 0.9754 to as high as 0.9782 in the minutes after the report was released. The impact was muted due to the fact of the closure of the U.K. and U.S. equity markets for national holidays. Similarly, the Dollar Index gained from 9561.06 to as high as 9567.03 following the data release.

Written by Christopher Vecchio, Currency Analyst

To contact the author of this report, please send inquiries to: cvecchio@dailyfx.com

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


News & Analysis at your fingertips.