The Canadian economy grew at a higher pace than expected: 0.3% in December. The annualized level of growth in Q4 2014 is 2.4%, also better than 2% expected. Year over year growth for December stands at 2.8%. Will the fall in oil prices be better reflected in January or Q1?
USD/CAD falls below 1.2460. Update: the fall extends below 1.2440. It’s important to note that the slide began just before the actual release.
In the satellite figures: the RMPI fell 7.7%, worse than predicted, but the IPPI edged down only 0.4%, better than expected.
Canada was expected to report a growth rate of 0.2% for December 2014, following a drop of 0.2% in November. The RMPI was expected to fall 6.2% and the IPPI to slide by 0.9%.
USD/CAD traded around 1.25 towards the publication.
Here is the preview:Â USD/CAD: Trading the Canadian GDP
The prices of oil have had a material impact on the C$, and recently they have been mixed: Brent crude oil has advanced and recovered while WTI is at lower ground around $50.
The Bank of Canada convenes tomorrow to make its rate decision after the surprising rate cut announced in late January. Will they cut again? The odds say that Poloz and his colleagues will leave the rate unchanged at 0.75%.
For more, see the CAD prediction
Here is the chart:
