USDCAD Falls Even After Significant Miss in CAD GDP Data
- Canadian Annualized GDP (May) comes in at 0.5% vs 0.8% estimate
- Canadian m/m GDP has a -0.2% read vs 0.0% expectation
- USDCAD gains, then falls on the back of Canadian GDP figures
Canada released GDP figures for May at 12:30 GMT. The annualized GDP figure for May showed a 0.5% print vs 0.8% estimates set forth by Bloomberg News economists. The data is a -0.7% drop from April. On a m/m basis, GDP for Canada came in at -0.2%vs 0.0% market expectations. Canadian GDP largely missed estimates, in another dismal showing from the Canadian economy.
USDCAD experienced initial strength on the back of the unfavorable Canadian GDP data. The pair, which has climbed in recent weeks, was holding resistance at C$1.306 for the day. After the data print, USCAD climbed from C$1.305 to C$1.308. The Canadian Dollar stemmed its losses causing a plummet in the pair which is currently trading at C$1.295. The US Dollar fell primarily due to a weak showing in 2nd quarter employment cost index.
The Bank of Canada recently cut rates in order to spur economic productivity after a miss in 1Q data. GDP for May signals a discouraging sign moving forward for the Canadian economy. Gross domestic product is a significant market mover as it gives market participants a snapshot of the overall economic output.
Here’s a summary of GDP figures from Canada:
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