The Canadian economy grew by 0.4% in November, better than 0.3% expected and top of an upwards revision for October: a slide of 0.2% instead of -0.3% initially reported.
USD/CAD fell to a new low of 1.3041. Can it make a move on the round 1.30 level? This is the next line.
Canadian producer prices are up 0.4%, a miss in comparison to 0.6% expected, but on top of an upwards revision. Year over year, Canadian PPI is up 2.2% after 1.5% last time. The Raw Materials Price Index is up 6.5% against 2.9% predicted. Year over year, GDP is up 1.6%.
In the US, the quarterly employment cost index is up 0.5% versus 0.6% that was forecast and the same figure seen in the previous quarter.
Canada was expected to report a monthly growth rate of 0.3% in November 2016 after a slide of 0.3% in October. See the preview: trading Canada’s GDP with USD/CAD. Canada is unique in publishing growth figures on a monthly basis.
USD/CAD traded around 1.3080 ahead of the publication. The US dollar has been on the back foot as Trump Muslim Ban continues reverberating. The new administration is busy in trying to implement campaign promises, but markets want to see fewer trade wars and more fiscal stimulus and is getting the opposite so far.