Canadian Dollar Higher on GDP Beat
-GDP MoM (JAN) comes in at 0.5% vs. 0.4% estimated
-GDP YoY (JAN) comes in at 2.5% vs. 2.4% revised prior from 2.3%
-USDCAD falls, but recovers at 1.10 level
The Canadian Dollar saw strength Monday morning at the US open as GDP figures came in above market expectations. The month over month print for January came in at 0.5% vs. 0.4% estimated and -0.5% prior while the YoY figure came in at 2.5%. The December YoY print was revised from 2.3% to 2.4% while Weekly Earnings data indicated a 3.0% YoY uptick from 2.4% prior.
Recent better than expected Canadian data combined with heavy USDollar selling as of late has halted the USDCAD uptrend that we saw at the start of the year. The pair has remained trading in a range between 1.10 and 1.12 over the past few weeks, but event risk moving forward may provide opportunity for USDCAD traders in the context of this range.
CAD Event Risk:
4/01 12:30GMT: Industrial Product Price MoM (FEB)
4/01 13:30GMT: RBC Canadian Manufacturing PMI (MAR)
4/04 12:30GMT: Unemployment Rate (MAR)
USD/CAD March 31,2014 (5-Minute Chart)
Source: FXCM Marketscope
Gregory Marks, DailyFX Research Team
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