Canadian GDP Rises 0.2% in June – USD/CAD Plunges

5

The economy of Canada grew by 0.2% in the month of June – the last of Q2 2012. Early expectations were for a gain of 0.1%. For the whole of Q2, the pace was 1.8% (annualized). This was also better than 1.6% that was expected. On the year over year level, the output in Q2 was 2.4% higher than in Q2 2011., exceeding expectations of 2.2%.

USD/CAD dipped under the important 0.99 line prior to the release and is now at around 0.9880. Support is found at 0.9840.

USD CAD Falling on Strong Canadian GDP August 31 2012

USD CAD Falling on Strong Canadian GDP – Click image to enlarge

All eyes remain on Jackson Hole, where Ben Bernanke will begin talking at 14:00 GMT.

Expectations have risen towards the event once again, as the dollar is weakening across the board. Earlier in the week, expectations became more caution. In the current situation, Bernanke can rock the boat both ways.

For USD/CAD, hints about QE3 could send USD/CAD below the all-important support line of 0.9840. A disappointment could send it to challenge 0.99 once again.

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

Get the 5 most predictable currency pairs

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 a 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.

5 Comments

  1. Pingback: Ben Bernanke Live Blog Jackson Hole | Forex Crunch

  2. Its too bad, I thought USDCAD was setup for a nice long too. luckily I got out by trading defensively….Never let a winner turn loser

  3. Pingback: Forex Weekly Outlook September 3-7 | Forex Crunch | Forex

  4. Pingback: USD/CAD Outlook September 3-7 | Forex Crunch