The Canadian economy is doing well, and we just got another reminder. Month over month, the economy grew by 0.3%, better than 0.1% expected for the month of June. As this concludes the second quarter, we also received details for the full quarter.
As this concludes the second quarter, we also received details for the full quarter. Q/q, growth stood at 1.1%. In annualized terms, this is about 4.5%, a growth rate that is of envy to other developed economies.
USD/CAD plunges from the highs. It traded around 1.2650, rising on the renewed strength of the US dollar and the tumbling down of oil prices. The GDP report sent it all the way to 1.2575.
More: USD/CAD: Could Make Another Brief Foray Below 1.25 But Unlikely Sustainable – CIBC
Here is how it looks on the 30-minute chart. Support awaits at 1.2565, a line that served as resistance when the pair traded at lower levels. Further support is at 1.2410. Resistance awaits at 1.27.
