Search ForexCrunch

A big disappointment from Canada: the economy did not grow in the month of July, contrary to expectations.

USD/CAD reaches higher and trades just below 1.12. Update: 1.12 is broken but the pair bounces back down.

Canada was expected to report a monthly growth rate of 0.2% in July, the first month of the third quarter. It grew by 0.3% in June. Canada is  special by publishing GDP figures on a monthly basis rather than a quarterly one.

USD/CAD traded around 1.1164 towards the release, down from a peak of 1.1189 beforehand.

The RMPI was expected to fall by 1.7% and actually dropped by 2.2%. The IPPI was expected to slide by  0.2% but actually rose by 0.2%. These additional figures do not change the picture that the headline pains: dark.

The Canadian dollar has been falling against the US dollar as part of the global rally of the US dollar. The pair is getting closer to the 1.1224 price, which was the original 2014 high. The next line is 1.1278, which is the 2014 high and the  highest since  July 2009.

Here is the preview: trading the Canadian GDP with Dollar/CAD