Canada grows in May by 0.4%, but the Canadian dollar
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Canada grows in May by 0.4%, but the Canadian dollar

While Canadian growth beat expectations, it isn’t enough against the greenback. Canadian Gross Domestic Product rose by 0.4% in May, better than predicted.  Canada was expected to report a growth rate of 0.3% in the month of May after only 0.1% in April.

USD/CAD traded above 1.09 before the release. The Canadian dollar has been beaten hard in recent days, mostly due to the rally of the US dollar.

USD/CAD is above 1.0920. It’s almost been a one way street in USD/CAD in the past week or so: the pair moved up, stopped for a break, and continued higher. We didn’t see any meaningful correction.

The lack of direction from the Bank of Canada also weighs on the loonie. And it’s also due to the strong dollar sentiment.

Despite the nice growth number, the pair listens to  the jobless claims number in the US, which was OK.

It seems that only the Canadian jobs report, due next Friday, can lift the loonie. That is, assuming it is positive.

More: Canadian dollar forecast.


USDCAD July 31 rising depsite strong Canadian GDP


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.