The Canadian economy grew by 3.1% in the second quarter, better than 2.7% expected. Month over month, we have a growth rate of 0.3%, also better than predicted. It’s important to note that the growth in Q2 came on top of a significant revision of growth in Q1: only 0.9% instead of 1.2% reported beforehand.
USD/CAD drops to 1.0830.
Canada was expected to report a m/m growth rate of +0.2% in June after +0.4% in May. For Q2, an annualized growth rate of 2.7% was expected.
USD/CAD traded around 1.0850 prior to the publication and is now lower, but the move does not seem to be really sustainable, despite some disappointing US data.
The Raw Materials Price Index was predicted to drop 1.3% and the Industrial Product Price Index carried expectations for -0.2%.
The Canadian dollar made a nice rebound lately, escaping the lows: USD/CAD was already very close to 1.10.
Next week features the rate decision from Canada as well as employment data. For more, see the USDCAD forecast.
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