Talking Points for Canadian GDP (AUG):

  • YoY beats estimates of 1.7% coming in at 2.0%
  • YoY prior revised higher from 1.4% to 1.5%
  • MoM beats estimates of 0.1% coming in at 0.3%

GDP out of Canada for the month of August came in far above estimates while the prior year over year print was revised higher by a tenth of a percent. The USD/CAD pair moved lower (CAD higher) as Dollar strength was reevaluated after a strong overnight session. Missed CPI data out of the Eurozone sent the Euro falling across the board and contributed to further strength in the greenback post-FOMC.

CAD_Higher_on_Canadian_GDP_Beat_body_Picture_3.png, CAD Higher on Canadian GDP Beat

USD/CAD (1H Chart)

CAD_Higher_on_Canadian_GDP_Beat_body_Picture_2.png, CAD Higher on Canadian GDP Beat

Source: FXCM Marketscope

Following the open of US equities, the Chicago Purchasing Manager index for the month of October was released coming in at 65.9 vs. 55.0 estimates. This is one of the highest prints on record and just shy of the all-time high of 67.6 in March of 2011.

CAD_Higher_on_Canadian_GDP_Beat_body_Picture_1.png, CAD Higher on Canadian GDP Beat

Gregory Marks, DailyFX Research Team

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