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
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • US Dollar weakness continues as selling pressure sustained over the last five trading sessions steers the DXY Index 2% lower. Get your $USD currency pairs market update from @RichDvorakFX here:https://t.co/LLlcezQmXK https://t.co/ln5dqmkCPr
  • The Canadian Dollar rally has taken USD/CAD into a key near-term support zone and we’re looking for a reaction down here today. Get your $USDCAD technical analysis from @MBForex here: https://t.co/xfYtytf4wF https://t.co/qfWjha3h37
  • Gold Price Outlook: Gold Goes Overbought, Finds Fibonacci Resistance https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/06/01/Gold-Price-Outlook-Gold-Goes-Overbought-JS-Finds-Fibonacci-Resistance.html https://t.co/dDQOzcMPxc
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.93% 🇨🇦CAD: 1.44% 🇳🇿NZD: 1.42% 🇪🇺EUR: 0.26% 🇯🇵JPY: 0.20% 🇨🇭CHF: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GhC3QOpAvG
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.19% Gold: 0.56% Oil - US Crude: 0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/WWjnR6G4UC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.70%, while traders in US 500 are at opposite extremes with 77.26%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Pw2G0PKgZJ
  • The US Congressional Budget Office has updated its economic forecasts. Says it could take 10 years to recover from the Coronavirus impact, reducing real GDP by potentially 3% or $7.9tln through 2030
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.72% Germany 30: 0.63% FTSE 100: 0.43% US 500: -0.02% Wall Street: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TM0YYxRxZz
  • The $USDCAD's tumble today is the third largest since Dec 1, 2017. Not even a targeted trade war or extreme risk swing day https://t.co/oFBpMxmUDv
  • #Crypto update: $BTC +0.8% $BCH -0.7% $LTC +0.7% $XRP -1.6% $ETH +1%
Forex News: Loonie Drops on a Negative GDP Surprise

Forex News: Loonie Drops on a Negative GDP Surprise

2012-10-31 13:27:00
Benjamin Spier, Technical Strategist
Share:

THE TAKEAWAY: Canadian GDP declines 0.1% in August -> First economic decline since February -> USDCAD now trading above parity

The Canadian gross domestic product declined for the first time since February of this year, sending the CAD lower against the USD in forex markets. The economy shrank by 0.1% in August, disappointing expectations for a 0.2% economic expansion. The GDP is still 1.2% higher than August 2011, according to Statistics Canada.

The decline was led by a 0.5% drop in goods production, a result of decreases in mining and gas and oil extraction. Services industries didn’t see a change in outputs. Following the 0.9% increase in July, mining fell 0.6% in August.

Canada’s economy has been struggling to grow as a result of global pressures, and an economic contraction is CAD negative. That’s why the Canadian Dollar dropped 23 points against USD following the forex news release, and is now trading above parity. Resistance could be provided by a 2-month upward trend line near 1.0026.

USDCAD 15-minute: October 31, 2012

Loonie_Drops_on_a_Negative_GDP_Surprise_body_usdcad.png, Forex News: Loonie Drops on a Negative GDP Surprise

“Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.”

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

DISCLOSURES

News & Analysis at your fingertips.