Canadian Economy Grows by 0.3% in April – USD/CAD Slides

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The Canadian economy grew by 0.3% in April. Canada is unique with publishing GDP reports every month rather than every quarter. 

Early expectations were for a growth rate of 0.2% following a mere 0.1% in March. USD/CAD is sliding after the publication, and is dropping towards support.

Update: the move extended – USD/CAD fell below 1.0230 and continued below 1.02. Also other currencies are gaining against the greenback.

USD/CAD fell to support following the encouraging results from the EU Summit. Support at 1.0230 held very nicely after a drop from very close to the 1.0360 line.

Canada’s Raw Materials Price Index for May dropped by 1%, slightly better than expectations that stood on -1%. The Industrial Product Price Index (IPPI) remained unchanged. It was expected to rise by 0.1%.

For more about the loonie, see the Canadian dollar forecast.

In the US, a series of small disappointments was recorded in second tier indicators:

Personal spending remained unchanged, +0.1% was expected. Personal income rose by 0.2%, falling short of +0.3%. The Core PCE Price Index rose by only 0.1%, lower than 0.2% that was predicted.

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About Author

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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