The Canadian economy did not grow in February 2017. Year over year, GDP grew by 2.5%, slightly below 2.6% predicted.
USD/CAD is stable around 1.3640. At the same time, the US released its first GDP estimate for Q1 2017 and it came out at the lowest in three years, 0.7%.
Canada was expected to report a monthly growth rate of 0% in February 2017. The Canadian economy expanded by 0.6% in January, starting the year right-footed.
USD/CAD remained on high ground ahead of the publication. Note that the US released its first estimate for Q1 GDP at the same time, and there were worries about an outright contraction.
CAD on the slide
The Canadian dollar has been sliding due to three main reasons. The most recent driver is Trump’s trade wars. The US President is eager to get some achievements under his belt and complained about an unfair treatment by Canada on dairy and wood products. His talk about Canadian politicians outsmarting American ones and his timber tax have pushed the loonie lower.
In addition, oil prices, the traditional driver of the C$, has been on the back foot. The big downfall in the price of the black gold in late 2014 has hurt the economy ever since. The last reason is housing. Bubbly house prices in Canada’s major metropolitan centers have been of concern for a while.
The last reason is housing. Bubbly house prices in Canada’s major metropolitan centers have been of concern for a while. However, the recent measures by the provincial government of Ontario (following British Columbia) have garnered more attention.
More: USD/CAD: Is this just the beginning? 1.40 is next?
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