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Canadian GDP falls 0.2% – USD/CAD shoots above 1.27

Another big disappointment from Canada: the economy squeezed by 0.2% in November, much worse than expected. Canada is unique in releasing GDP numbers  on a monthly instead of a quarterly basis. Year over year,  output grew 1.9%, below 2.1% predicted.

USD/CAD is shooting above 1.27. Update: the pair already reaches 1.2770.

This is not the first disappointment from Canada. We had a significant downwards revision of 2014 employment data. Statistics Canada basically erased a third of job gains reported throughout 2014 and the unemployment rate is up to 6.7%. This does not bode well for next week’s labor data from Canada.

Here are 4 reasons for the CAD Crash

Canada  was expected to report a slide of 0.1% in November’s Gross Domestic Output after a rise of 0.3% in October (before revisions).

USD/CAD traded around 1.2670 towards the publication. The US releases its own GDP numbers at the same time.

Is the road to 1.30 open? Well, the vultures are circling on the loonie:  CAD Sell-Off Intact – Credit Agricole

Here is the chart that shows how Dollar/CAD is shooting up:

Canadian dollar falls on weak Canadian GDP January 30 2015


Yohay Elam

Yohay Elam

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 a 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.