A big disappointment for the Canadian economy: it squeezed by -0.5% in September. On a quarterly level, the economy advanced 2.3% annualized, within expectations and Canada is officially out of the recession. Nevertheless, the loonie does not like it.
USD/CAD is jumping 60 pips to 1.3380.
The economy squeezed by 0.3% in Q2 according to the revised data.
Canada was expected to report no change in the country’s output in September, the last month of Q3. In August, the economy grew by 0.1%. Quarter over quarter, an annualized level of 2.4% was expected after -0.5% in Q2. That last figure showed that Canada was in recession – two consecutive quarters of drops.
USD/CAD traded around 1.3318 towards the publication.
This is a very important week for the Canadian dollar: we also have the Bank of Canada’s rate decision tomorrow, jobs data on Friday as well as the OPEC meeting.
The US dollar has slid in the past sessions, easing off the highs. Later today we’ll get the ISM Manufacturing PMI.
Here is how the reaction looks on the chart.
More: Is USD/CAD Topping Out? Levels & Targets – Westpac
