Canadian GDP Squeezes by 0.2% in December – USD/CAD Sells the Fact



The Canadian economy shrank by 0.2% in December, exactly as expected. This isn’t good news, but a one-month contraction isn’t extraordinary in Canada.USDCAD Technical Chart After Canadian GDP for December Q4 2012 released on March 1 2013

USD/CAD climbed towards the release and manged to reach 1.0342. The pair reacted with a drop immediately afterwards, falling as low as 1.0306.

The pair has support at 1.03, followed by 1.0250. Resistance is at 1.0360, followed by 1.0420. For more levels, see the USD CAD forecast.

Canada is unique in releasing GDP figures once per month. The annualized growth rate in Q4 stands on 0.6%, also as expected. An upside revision was made for Q3, from +0.6% to +0.7%.

Update: 1.03 certainly works as strong support. It looks like CAD/USD parity is far off for now.


About

Yohay Elam – Founder, Writer and Editor

I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me.

Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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