The Canadian economy grew by 0.2%. RMPI is only +0.6% and IPPI is only +0.1%, Canada was expected to report a growth rate of 0.2% in February after a strong 0.5% growth rate in January. Canada releases GDP once a month. The headline figure is as expected but the secondary ones fell short.
USD/CAD was trading on low ground before the release. The pair remains around 1.0950 after a few choppy moves.– updates coming —
The Canadian Raw Materials Price Index (RMPI) for March was predicted to rise by 0.8%. The Industrial Product Price Index (IPPI) carried expectations for a rise of 0.5%.
At the same time, the US also released GDP numbers: the initial estimate for Q1 and in the US we have a big disappointment. The US grew by only 0.1% (annualized).
Despite some stronger data from Canada, the BOC remains somewhat dovish and has not totally ruled out rate cuts.
For more on the Canadian dollar, see the USDCAD prediction.Get the 5 most predictable currency pairs